What is the difference between a tax deduction and a tax credit?

Understanding taxes can be a little tricky, so you’re not alone if you’ve ever found yourself scratching your head, trying to figure out the difference between a tax deduction and a tax credit. Don’t worry though, we’re here to guide you through this maze and clarify what these two terms mean. 

Believe it or not, understanding these basics can significantly impact your bottom line and potentially save you some serious money. So, buckle up and let’s dive right in! 

What are Tax deductions?

Think of tax deductions as a way to decrease the amount of your income that is subject to taxation. What does this mean? Quite simply, they chip away at the total income you’re required to pay tax on, thereby reducing the amount you need to pay.

Here’s some common tax deductions in Denver: 

  • If you’re working from home, the home office deduction can be claimed.
  • Medical and dental expenses spanning from surgeries to glasses, and even chiropractor visits.
  • Education-related deductions covering tuition, enrollment fees, and necessary school supplies.
  • Business-related deductions for business expenses, insurance premiums, and costs associated with maintaining a physical store or office if you’re running your own business in Denver.
  • Deductions for donations made to non-profit organizations, both in cash and kind.
  • Housing expenses including property taxes, mortgage interest, and points on your home.

Navigating through these deductions may initially feel daunting, but it’s essential to identify which ones are applicable to you in order to potentially minimize your tax liability. That’s where we can help, with our extensive experience with tax preparation in Wichita KS.

What are Tax Credits?

Think of tax credits as a type of tax perk, directly reducing the amount of tax you owe to the government. Not just a reduction, but a dollar-for-dollar subtraction from your tax bill. For example, if you owe $1000 in taxes but qualify for a $200 tax credit, your tax bill drops to $800.

But it’s important to remember, not all tax credits are created equal. There are two main types: refundable and non-refundable. A refundable tax credit can lead to a tax refund. Say, you owe $500 in taxes but have a $1000 refundable tax credit, you’ll receive the remaining $500 as a refund. On the other hand, non-refundable tax credits won’t generate a refund, they simply reduce what you owe to zero. Sounds great, right? But remember, navigating the path to these credits requires some understanding of tax law, or a really good tax professional.

At Wichita tax, we pride ourselves on our track record of ensuring our clients enjoy the greatest possible savings during tax season. If you’re confused about what deductions or credits you’re entitled to, give us a call and we’d be happy to assist.


What happens if you forget to file your taxes?

Though often perceived as a mundane aspect of life, the timely submission of your tax returns plays an integral role in your financial planning and legal standing. Understandably, it can be a complex task laden with intricate processes and potential pitfalls. Notably, one such predicament that many individuals and businesses often find themselves in is forgetting to file their taxes. While the reasons for this occurrence may vary, the consequences typically fall into a standard set of repercussions laid out by the Internal Revenue Service (IRS). 

In the succeeding sections of this article, we, at Wichita Tax Advisors, will seek to provide informational guidance regarding the consequences of not filing your taxes promptly. We will look at how these specific repercussions impact both individuals and business entities, evaluating how the fallout may differ according to your particular tax situation.

Understanding the IRS Penalties for Failure to File Taxes

The IRS, in an effort to encourage the consistent filing of taxes, imposes certain penalties for individuals or businesses who fail to comply. The nature of these penalties can vary substantially, as can their potential impacts on your overall financial situation. Therefore, it is imperative to demystify the complexities therein to enable conscientious tax planning and filings.

Personal Income Tax

For individuals who neglect or inadvertently fail to file their tax return, the immediate repercussion is the Failure to File penalty. This penalty consists of an additional 5% of the unpaid taxes for each full or partial month that your return is late, up to a maximum of 25%. If you file your return more than 60 days after the due date or the extended due date, the minimum penalty you could pay is the smaller of $135 or 100% of your unpaid tax. Notably, both of these penalties can be imposed concurrently, which exacerbates the financial toll on the individual. 

Business Taxes

Businesses are not immune to these ramifications. In fact, the consequences of not filing are arguably more severe for businesses as they may face additional penalties apart from Failure to File and Failure to Pay. Depending on the type of business and its tax structure, potential penalties could include Failure to Deposit Penalty for not depositing employment taxes, Trust Fund Recovery Penalty for failing to withhold and pay income and employment taxes, and penalties for not filing information returns or supplying incorrect information. This illustrates the pressing need for businesses to not only be diligent with tax filing but also with all aspects of tax-related responsibilities. 

The IRS, being the predominant regulator, can also impose interest on unpaid taxes and penalties. As of 2023, the rate is the federal short-term rate plus 3%, compounded daily. It must be noted that this interest accrues from the due date of the tax return until the date when the full amount is paid. It applies whether or not you have received a notice and demand for payment. This layer of penal provisions amplifies the gravity of timely tax compliance and the potential risks associated with non-compliance. 

Worst Case Scenario

In extraordinary circumstances, tax evasion charges could be levied, which carry a potential prison term and significant monetary fines. Although these worst-case scenarios are relatively rare, they underscore the importance of good financial management and IRS compliance at every level of financial activity.

Understanding these consequences should stimulate your desire to stay in compliance with IRS tax policies, both for financial reasons and peace of mind. Your diligence in remaining compliant can protect against potentially severe penalties and associated stress.


How can I organize my financial records ready for tax season?

Welcome to Wichita Tax Advisors’ blog! With tax season fast approaching, we understand the anxiety that comes with getting your financial records in order. This blog post aims to shed light on the often complex subject of tax preparation for small to medium-sized businesses. Let’s take the stress out of your tax season preparations, shall we?

Keeping your financial records in order might seem daunting but it’s absolutely crucial for a successful and smooth tax season. No need to worry though! We’re going to provide you with practical tips and recommendations to aid you in improving your tax preparation skills and organizing your records like a pro.

Why is organizing your financial records important? 

Financial record organization is more than keeping your documents neat and pretty. It’s about ensuring business continuity, saving time, staying prepared for audits, and most importantly, ensuring an accurate tax return. A small error, an overlooked receipt, or lost invoices could lead to tax filing inaccuracies that might cost your business in the long run. Getting it right is in your best interest – and we’re here to help you do just that.

Now, let’s dive into our list of tips and recommendations to organize your financial records for the upcoming tax season.

Creating a System for Organizing Financial Records

Knowing how to effectively organize your financial records can not only reduce stress but also streamline your tax preparation process. It can ultimately help you to potentially maximize your tax deductions. Let’s walk through some actionable ways to organize your financial records.

Tip 1: Simplify Your Receipts 

Those bits of paper can quickly stack up. Rather than letting them clutter your workspace, consider scanning and archiving digital copies. Streamline this process by using mobile apps designed specifically for receipt tracking and categorization. This’ll not only keep your physical workspace tidy, but ease your ability to reference any purchase, anytime.

Tip 2: Leverage Cloud-Based Document Storage 

Moving your records from physical drawers and filing cabinets to a cloud-based document storage system ensures you’ll have access to these documents anywhere and anytime. You’ll also lessen the risk of losing these vital documents from accidents or misplacement.

Tip 3: Regularly Update Your Financial Records 

Instead of waiting until tax season is breathing down your neck, spend small amounts of time updating your records throughout the year. This consistent maintenance not only eases you into tax season, but it also keeps your financial awareness sharp.

Tip 4: Keep Personal and Business Expenses Separate 

If you’re a small business owner, maintaining a clear distinction between personal and business expenses is paramount. Implement a system that makes this separation crystal clear to help avoid confusion at tax time, and to provide clarity to the IRS if needed.

Tip 5: Retain Essential Records 

Finally, remember the IRS’s period of limitations: essentially, how long you need to keep records. For most businesses, this is three years from the date you filed the original return, but there are cases where records should be kept longer. Consider consulting an experienced tax advisor, like Wichita Tax Advisors, to ensure compliance. 
By implementing these tips into your routine, you can reach the next tax season with confidence, fully organized and prepared. Reach out to Wichita Tax Advisors today to optimize your procedures and allow our skilled tax preparation Wichita KS professionals to lighten your load.


Tax Strategies for Small Businesses

Every year, as seasons change and the end of the fiscal year draws closer, small business owners like you face the daunting task of handling taxes. Whether it’s navigating the numerous tax codes, seeking opportunities to minimize tax liability, or simply trying to stay in compliance, tax planning is a crucial part of running a successful enterprise.

But fear not, here are some of the best tax strategies specially tailored for small businesses. 

Understanding Your Tax Obligations 

Paying taxes is a necessary and vital responsibility of every small business owner. It’s not just the law, it’s also a way of participating in and contributing to society. But that doesn’t mean you have to pay more tax than necessary. Understanding your tax obligations and being aware of all the benefits and deductions your business is eligible for can significantly minimize your tax burden. This is where a trusted tax advisor or CPA can be extra valuable.

Taking Advantage of Tax Deductions 

One of the most effective strategies to reduce your tax bill is by taking advantage of all the tax deductions available to your business. Here are a few examples: 

  1. Business expenses: 
  • This includes everything from office rent and utility bills to staff wages and business equipment.
  1. Home office: 
  • If you use part of your home exclusively for your business, you can deduct a portion of your home-related expenses, like mortgage interest, property taxes, and utilities.
  1. Vehicle expenses: 
  • If you use your car for business, you can deduct its operating and maintenance costs.

Make sure to document all business-related expenses! Whether you prefer keeping paper receipts, or using a financial tracking app, it will for sure pay off.

Managing Your Tax Payments 

Another crucial aspect of tax planning is managing your tax payments. Many small businesses fall into difficulty when they don’t prepare for their tax bills. Here’s how you can manage your payments effectively: 

  • Set aside money for tax preparation purposes regularly. Treat this as a non-negotiable business expense.
  • Consider making estimated tax payments. By making quarterly payments, you can spread the cost over the duration of a year rather than struggling with a lump sum payment.
  • Consult with a professional tax advisor. At Wichita Tax Advisors, our experienced team can guide you in forecasting your tax obligations accurately.

Employees vs Freelancers

When you hire employees, you become responsible for withholding certain amounts from their paychecks for federal and sometimes state income tax. In addition, you’ll need to pay the employer’s portion of Social Security and Medicare taxes, also known as FICA taxes. 

Instead, it may be worth hiring freelancers on an hourly / per-project basis. You can expect to save 20 to 30 percent annually with a freelancer when you factor in not having to pay for company benefits, such as health insurance and retirement funds, as well as Medicare and Social Security.


Running a small business requires you to juggle many responsibilities, with taxes being one of the most important. By implementing a smart tax strategy tailored to your business, utilizing available deductions, and effectively managing your tax payments, you can minimize your tax burden, avoid costly penalties, and ensure your business’s financial health. At Wichita Tax Advisors, we are here to help you make it a reality.
Taking control of your tax obligations doesn’t have to be daunting or overwhelming if you approach it with knowledge and a strategic plan. Trust one of our expert Wichita CPA‘s and let us navigate through the complex world of taxes for you.


How to Report Income from Different Sources, such as Employment, Freelance Work, Investments, or Rental Properties?

Managing income from various sources is becoming increasingly common in today’s diverse economy. With multiple streams of revenue, individuals need to navigate the complex world of tax reporting accurately. Whether you earn money from traditional employment, freelance work, investments, or rental properties, understanding how to report these sources of income is essential to stay compliant with tax regulations. In this blog, we will provide a comprehensive guide on how to report income from different sources and ensure a smooth tax filing process.

Employment Income

Reporting income from your primary job is usually straightforward. Your employer will provide you with a W-2 form detailing your total earnings and the amount of taxes withheld during the tax year. Be sure to double-check the information on the W-2 for accuracy and keep it safe for tax preparation.

Freelance or Self-Employment Income

If you work as a freelancer or are self-employed, you will need to report your income using a Form 1099-MISC for each client who paid you $600 or more during the year. Additionally, if you earn more than $400 in self-employment income, you must file a Schedule C with your tax return. This form allows you to deduct eligible business expenses from your gross income, reducing your taxable earnings.

Investment Income

Income from investments, such as dividends, interest, and capital gains, must be reported on your tax return. If you received dividends or interest, you should receive a Form 1099-DIV or Form 1099-INT, respectively, from the financial institutions. These forms will detail the amount of income you earned from your investments. Capital gains or losses from the sale of assets should be reported on Schedule D of your tax return.

Rental Property Income

Income earned from rental properties is also taxable. If you own rental properties, you will need to report the rental income and expenses on Schedule E of your tax return. Make sure to keep records of all income and expenses related to your rental property to accurately report the net rental income.

Miscellaneous Income

In addition to the aforementioned sources, you may have other types of income that need to be reported. For example, if you received prize money, jury duty pay, or gambling winnings exceeding a certain threshold, you should report them as miscellaneous income on your tax return.

Tips for Smooth Income Reporting

Organize Your Documents

Keep all relevant tax documents, such as W-2s, 1099s, and receipts, in one place. Staying organized will save you time and prevent headaches during tax preparation.

Use Tax Software or Hire a Professional

Tax software can simplify the process of reporting income from various sources. It can automatically import data from your tax documents and guide you through the reporting process. Alternatively, hiring a qualified tax professional, like Wichita Tax Advisors, ensures accuracy and helps you optimize your tax deductions.

Be Aware of Tax Deductions and Credits

Familiarize yourself with tax deductions and credits that apply to your situation. This knowledge can help you reduce your tax liability and potentially increase your tax refund. At Wichita Tax Advisors, we help our clients save as much as possible on taxes. 

File on Time 

Missing the tax filing deadline can result in penalties and interest charges. Aim to file your tax return by the due date, or file an extension if needed.

In conclusion, effectively reporting income from different sources is crucial to complying with tax regulations and avoiding potential penalties. Whether you earn money from employment, freelance work, investments, or rental properties, staying organized and using the appropriate tax forms will streamline the reporting process. By understanding the tax implications of your income sources and keeping accurate records, you can ensure a smooth and successful tax filing experience. 
If you ever feel uncertain, consider seeking the assistance of a qualified tax professional, like Wichita Tax Advisors, to ensure that your taxes are prepared accurately and efficiently. We are well trusted for Tax Preparation Wichita KS.


What Are the 5 Basic Accounting Principles?

Whether you’re a business owner, investor, or simply interested in understanding the financial health of an organization, grasping the fundamentals of accounting is essential. In this article, we will explore the five basic accounting principles that form the foundation of accurate financial reporting. And who better to guide us through these principles than a trusted Wichita CPA from Wichita Tax Advisors. 


The Principle of Entity states that the financial activities of a business should be kept separate from the personal affairs of its owners or any other business entity. This means that a business’s financial records should be maintained independently and should not be intermingled with personal finances. A CPA can help ensure that a business’s financial statements accurately reflect the business’s activities, enabling sound decision-making.


The Principle of Objectivity emphasizes the importance of recording financial transactions based on reliable evidence and verifiable data. Accountants must use unbiased, factual information to avoid any subjective interpretations. This principle ensures transparency and credibility in financial reporting. A skilled CPA possesses the expertise to gather and analyze objective financial data, minimizing the risk of errors or misinterpretation.


Consistency is crucial in accounting to facilitate meaningful comparisons over time. The Principle of Consistency requires that once an accounting method or principle is adopted, it should be consistently applied in subsequent periods. This ensures that financial statements from different periods are comparable, allowing stakeholders to identify trends and make informed decisions. A skilled CPA from Wichita Tax Advisors can ensure that consistent accounting practices are followed in your business, promoting transparency and accuracy.


The Principle of Cost states that assets and liabilities should be recorded at their original purchase cost. This principle emphasizes the importance of objectivity in accounting, as the historical cost can be verified through documentation such as invoices and receipts. However, it’s important to note that certain assets, such as marketable securities, may be recorded at fair value rather than historical cost. A Wichita CPA can guide businesses in correctly valuing their assets and liabilities based on the principle of cost.


The Principle of Materiality suggests that financial information should be reported if it is likely to influence the decisions of users. Materiality is a subjective concept, and accountants use their professional judgment to determine what information is significant enough to be disclosed. A CPA possesses the expertise to identify material financial information and present it in a clear and concise manner to aid stakeholders in making informed decisions.

In conclusion, understanding the five basic accounting principles is crucial for anyone seeking to comprehend financial statements and make informed financial decisions. Whether you’re a business owner, investor, or simply interested in financial matters, these principles provide a solid foundation. 

If you’re in the Wichita area, partnering with a skilled CPA from Wichita Tax Advisors can enhance your financial management practices and ensure compliance with these principles. A Wichita CPA can guide you through the complexities of accounting, helping you achieve accurate financial reporting and better control over your business’s financial health.


How is your tax refund calculated?

As tax season approaches, many tax payers are eager to learn how their tax refund is calculated. The process of calculating your tax refund can be pretty complicated, but it’s essential to understand so that you’re not leaving any money on the table. In this blog post, we’ll walk you through the basics of how your tax refund is calculated and explain how a tax services company like Wichita Tax Advisors can help you maximize your refund.

Income – Deductions – Tax Credit

To understand how your tax refund is calculated, you must first understand how your taxes are determined. Your taxes are calculated based on your income, deductions, and tax credits.

Your income is the total amount of money you earned throughout the year, including your wages, salaries, and any tips.

Your deductions are expenses that you can deduct from your income to reduce your taxable income, such as mortgage interest, charitable donations, and state and local taxes. Depending on your state and job you may also be able to deduct things such as medical/dental expenses and uniform costs.

Tax credit is the amount of money you can subtract from the tax you owe. This can differ from person to person depending on if you are head of the household, married or single. This will automatically be deducted by the tax revenue office once your yearly tax has been calculated.

Tax Refund

Your tax refund is the difference between the total amount of tax you paid throughout the year and the amount of tax you owe. If you paid more in taxes than you owe, you’ll receive a refund. If you paid less in taxes than you owe, you’ll need to pay the difference.

Tax Return

To calculate your tax refund accurately, you’ll need to complete your tax return. Your tax return is a form that reports your income, deductions, and credits for the year. You’ll need to file your tax return by the tax year deadline to avoid any penalties or fines.

Why Use Tax Services?

At Wichita Tax Advisors in Kansas, we understand that the tax system can be very complex and overwhelming. That’s why we offer comprehensive tax services to help you maximize your refund and minimize your tax liability. Our experienced tax professionals will work with you to ensure that you’re taking advantage of all the possible deductions and credits that many people would miss, giving you the most significant tax refund possible.

We also offer tax planning services to help you prepare for next year’s tax season. By working with us, you can develop a reliable strategy to optimize your tax situation and avoid any surprises when it’s time to file your taxes.

If you’re looking for a reliable and trustworthy tax company, look no further than Wichita Tax Services in Kansas. We are dedicated to providing our clients with exceptional service and support, and we strive to make the tax process as easy and as stress free as possible.

In conclusion, understanding how your tax refund is calculated is essential to ensure that you’re not leaving any money on the table. As a professional Tax Services Wichita Kansas, we are committed to helping our clients maximize their refunds and minimize their tax liability.Contact us today to learn more about our comprehensive tax services and how we can help you achieve your financial goals.


Can You Go to Jail for Not Filing a Tax Return?

Filing taxes is a requirement for most of us—what happens if you decide not to file a tax return?

Filing your taxes might not be one of your great joys in life, but it is an important process. Since doing taxes can take a while to manage, some people wonder how important it really is to file taxes and get them handled on time. In this article, we are going to look at the legality of failing to file your taxes and what it might mean for you.

Not Filing a Tax Return: What You Need to Know

Filing taxes is a requirement for most people. If you do not file your taxes, it is unlikely that someone will appear to arrest you at midnight—but that does not mean it is legal. You are obligated to file your taxes, and there are very real consequences for failing to do so.

Is it Legal to Not File a Tax Return?

There is a common belief that everyone has to file taxes, but that actually isn’t true. For certain people in certain circumstances, filing taxes is a process that can be skipped. However, it is very unlikely that the average person will meet these standards.

Unless you know for a fact that you are one of the few people who are exempt from filing taxes, it is absolutely necessary to file a tax return. Most people are legally expected to file a tax return every single year.

Can Refusing to File a Tax Return Land You in Jail?

Since it is technically possible to skip filing your taxes by simply not choosing to do so, you might be wondering what the repercussions are. How enforced is this process, and what does it mean if you choose not to file your taxes as outlined by the existing laws? 

Failing to file your taxes is one form of tax evasion, and it is absolutely illegal. While it is possible that you could just end up paying a fee, failing to file a tax return is a crime that can be punished with one year of jail time for every year that you choose not to file your taxes.

Ensuring Your Tax Return is Filed on Time

Since it is illegal to avoid filing or paying your taxes, it is important to make sure it is handled on time. To avoid any problems that come with failing to file your taxes or filing them incorrectly, it is best to work with tax professionals who can help you to get them done the right way and on time!

The Takeaway

Failing to file your tax return is a serious crime, and it is one that is easy to avoid with the right support and tools. To get help with tax preparation, Wichita, KS residents can partner with us today. We help individuals and businesses to manage their taxes every year!


Who Regulates CPAs?

Certified public accountants (CPAs) can assist organizations and individuals with various tasks related to finances, taxes, insurance, and more. Learn more about what a CPA can do to help you or your business and who provides oversight of these professionals.

What is a CPA?

A certified public accountant is a licensed professional accountant. Each state issues its own CPA licenses, and CPAs must hold a license in the state where they intend to practice. 

The CPA designation signifies a higher professional standard than others in the accounting industry. Those who want to become a CPA must pass an examination called the Uniform CPA exam. The Uniform CPA exam is known for being thorough and rigorous.

In addition to passing the Uniform CPA exam, people must meet specific work, education, and examination standards. They must hold a bachelor’s degree in finance, accounting, or business administration. They must also have at least two years of public accounting experience.

Certified public accountants can hold positions in public or corporate accounting. They may also fill executive positions, such as a company’s chief financial officer (CFO). 

Who Regulates CPAs?

In Kansas, the Kansas Board of Accountancy regulates CPAs. It is the regulatory body that carries out the laws and regulations that govern CPAs in this state. 

The mission of the Kansas Board of Accountancy is to identify accountants who have met state qualifications in higher education, experience, ability, and dedication. The Kansas Board of Accountancy offers information on taking the CPA examination, pre-evaluation of college credits, registration assistance, and more. 

What Can a CPA Do?

Certified public accountants can perform a wide range of services, including:

  • Accounting
  • Auditing
  • Tax preparation
  • Consulting

A CPA can work with corporations, non-profit organizations, small businesses, individuals, and governments. 

Generally, CPAs focus on three areas of specialization.

  1. Tax services

A CPA may offer tax services to both organizations and individuals. They can file state, federal, and local tax returns and use their knowledge of tax laws to minimize their clients’ tax burdens. If a company or individual faces an IRS audit or questions from state or local authorities, the CPA will represent their clients in resolving the matter.

  1. Audit and assurance services

Auditing is an evaluation of economic and financial information to ensure accuracy and adherence to generally accepted accounting principles.

Assurance services provide clarity and context for financial and non-financial information so that decision-makers can make informed choices. 

  1. Management services

CPAs may assist with supervising and managing an organization or individual’s daily activities. CPAs can help people develop strategies to reach specific goals and make plans for the long term. Specific services a CPA may offer include”

  • Cash management
  • Budgeting
  • Financial planning
  • Preparing financial statements
  • Risk management
  • Investment guidance
  • Estate planning
  • Insurance coordination

Find a Wichita CPA Now

A CPA offers high-quality, knowledgeable support and guidance in various financial, insurance, and tax matters. If you are looking for a Wichita CPA, contact the team at Wichita Tax Advisor today to learn more about how we can assist you.


Is a CPA the Same as a Tax Preparer?

Your taxes are due, and you want them to be done the right way. When choosing to use a tax professional, there are a few options out there. Two of the most popular options to prepare your taxes are a Certified Public Accountant (CPA), or a tax preparer. These are not the same, and the most important difference between the two is that the CPA is a licensed tax professional, while the tax preparer is generally unlicensed. 

There are some other differences between the two, and understanding those differences will go a long way helping you decide what is the best fit for your unique tax situation. Both of these are suitable for filing your taxes, but depending on the complexity of your return, one might be a better fit than the other when looking for tax services in Wichita, Kansas

What Makes a CPA Different?

CPAs have to go through a challenging set of requirements to earn that licensing designation. In Kansas, potential CPAs have to complete 150 semester hours of college-level coursework that concentrates on accounting. Then they have to complete and pass multiple exams before they can apply for the CPA certificate. They also must accumulate the required hours of experience, and once all those steps are completed, can apply for a license.

Because of these guidelines, CPAs generally have a much more extensive background in accounting. Some CPAs specialize in specific accounting fields, but if they focus on tax accounting, they’re going to bring extensive knowledge to the table. Also, if your tax return has anything out of the ordinary, or is more complex than simply filing your W-2, the CPA is going to be better equipped for those situations.

What Can CPAs Do That Tax Preparers Can’t?

Tax preparers are typically less expensive than CPAs when filing tax returns, but an unlicensed tax preparer could essentially be anybody that advertises themselves as one. CPAs are well equipped to perform any number of tax returns, no matter the complexity. CPAs are also generally more focused on providing ongoing services in other areas of accounting, which can provide assistance with other financial matters.

It’s also important to note that non-licensed tax preparers cannot represent you in the event of an audit by the IRS. CPAs are always approved to represent their clients through the audit process, and that can reduce a lot of stress for the taxpayer. Tax preparers can take some extra steps to earn distinction as an Enrolled Agent (EA), which allows them to represent their clients in the case of an audit. However, if your tax preparer hasn’t taken these steps, the taxpayer is on their own in that audit.

CPAs are the more knowledgeable and certified option in most cases, but tax preparers might be all that’s needed in the case of some of the simpler tax filings. For more information on the differences between a tax preparer and a CPA – and to help determine which is right for you – reach out to the experts at Wichita Tax Advisor today.


What is Tax Preparation?

Tax preparation can save you time, money, and fees–learn how.

Tax preparation is the process of gathering all necessary information and documentation required to file an accurate and timely tax return. This includes navigating forms and managing paperwork. It is important to note that tax laws and regulations are subject to change and can be complex, making it essential to work with a tax professional who is knowledgeable and up-to-date on the latest tax codes. Let’s discuss tax preparation more fully.

Everything You Need to Know About Tax Preparation

To make the tax preparation process as smooth and stress-free as possible, it is vital to gather all necessary information and documentation. This includes making sure that any forms, like W-2s and 1099s, are received, and that any important receipts or bank statements are collected. It is also a good idea to keep track of any deductions or credits that may apply to your specific situation, including charitable donations or medical expenses. Let’s explore professional tax preparation.

Expert Solutions

Do you have a nagging feeling that you might have missed something when filing your taxes last year? Are you considering taking all the tax deductions you are entitled to? If so, consider hiring a professional to help with your tax preparation. They can guarantee accuracy and are perfect if you aren’t sure where to start, don’t have time to do your taxes, or just don’t understand tax laws.

Ongoing Support

Experts who specialize in tax work will know the ins and outs of the process much better than the average person. With tax preparation professionals, you can use their knowledge for your benefit. You can kick back as they manage the paperwork for you and confirm that you are in compliance with tax laws.

Major Savings

Working with a tax preparation expert is the best way to maximize your tax savings. With years of experience and an in-depth understanding of the tax code, they can find deductions and credits that you might need to be aware of.

A tax preparation expert will help you file accurately and offer personalized advice tailored to your specific situation. In addition to this, they may suggest strategies that could help reduce your taxable income and maximize your overall savings. They will also be able to identify any potential deductions you may qualify for to lessen your tax burden.

The Takeaway 

Working with a tax preparer who is experienced and knowledgeable about tax laws can benefit you for several reasons. Even if something arises in an audit or during the filing process that requires assistance after filing, experienced professionals can help mitigate any damages or further issues. In short, working with an experienced tax preparer will save you time, money, and stress! To learn more about the services for tax preparation Wichita, KS residents are using, contact us today!


What is a CPA Accounting?

When tax time rolls around, confusion abounds for many people. Tax codes get increasingly confusing, and unearthing all of the correct tax breaks and laws can be a nightmare to sort out on your own. Utilizing a Certified Public Accountant (CPA), can clear some of the fog around this cumbersome annual process, but a lot of people don’t know all of the benefits of using a Wichita CPA

Here’s a quick look at what it means to be a CPA, and how they can help you get more from your tax return while removing the headaches of the process. 

Earning the CPA Distinction

CPAs are some of the most trusted professionals around because they have to go through a rigorous exam to earn the distinction. The CPA Exam and a number of other licensure requirements are needed to get through the process. Each state has different requirements to achieve the license, and most are typically only licensed in a single state. This distinction has become synonymous with reliability and industry knowledge. 

Not all accountants are CPAs. Any person that interprets and maintains financial records can be considered an accountant, but CPAs are able to perform other services like tax preparation, audits, financial planning, and consulting in numerous areas – such as tax consulting or litigation consulting. Earning the CPA distinction broadens the scope of what accountants can do, both in and out of the realm of accounting.  

Why Should I Use a CPA?

CPAs are different than accountants not only because of the high standards they need to meet for licensure, but also because of what they need to continue to do after earning the designation. CPAs are licensed by a professional governing body, and have to maintain a distinct code of ethics. In order to maintain the distinction, CPAs must take part in continuing education to make sure they stay abreast of any shifts or changes.

CPAs are also held to a fiduciary standard, which means they legally have to put their clients’ interest above everything else. These stringent standards are upheld by the Association of International Certified Professional Accountants (AICPA) and that organization’s code of conduct. They’re also recognized by the government as experts that can perform specific accounting functions that other accountants cannot. 

Among these duties are conducting company audits as an external third party. These always should be handled by a CPA, as should the preparation of audited financial statements. This is required for any reports filed with the Securities and Exchange Commission (SEC). CPAs can also act as representation for taxpayers and businesses when facing an audit by the IRS. Accountants might be able to prepare your tax return, but a CPA is needed to defend that return against questions form the authorities. 

CPAs are valuable resources for anything dealing with your financials – both individual and for your business. For more information on the differences between a CPA and a regular accountant, or to learn how a CPA can help, reach out to the experts at Wichita Tax Advisor today.