Say “I Do” And Then Make Tax Changes
Each year, married couples make plans and get caught up in the fun and excitement. There are countless details required in the overwhelming preparation. While it may not be on your list of priorities, taking steps to ensure that you and your spouse are prepared to file taxes can help you avoid problems with the Internal Revenue Service once you tie the knot.
Proper tax preparation for newlyweds can save headaches, time and money. You will need to make sure to, for example, change your legal name. In order to properly file your taxes and all exemptions, you will need to let the Social Security Administration know that you are legally changing your name and also request a new social security card. This can be done at your local Social Security office and by completing Form SS-5, the Application for a Social Security Card.
After that, you will need to make sure to change your address. You should notify the U.S. Post Office of this change and also let the Internal Revenue Service (IRS) know of your move. You can file IRS Form 8822 in order to make sure that this is done correctly.
Then, you will want to determine your options for filing status. Your marital status is determined by IRS based on whether or not you are married on December 31 of that tax year. If you are legally married, you can make the decision whether to file separately or jointly. The right status can save you a lot of money. If you are unsure which status to pick, consult an accountant or tax professional. They will be able to look at your specific situation and determine which filing status, itemizations and deductions you should select.
These steps can help ensure that your taxes are completed properly once you are married. Other things you can do include keeping proper records of purchases, business expenses and other financial information such as student loans. This correct documentation can help you avoid problems with the IRS, including troubling audits.
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Seo For Online Marketing
Search Engine Optimization is a considerable part of what I accomplish every day. It is a large part of what I do daily. I have been involved in search result optimization from prior to that date when Stanford university did the Now famous deal with the two gentlemen that created Google.
A bit of search engine optimization history, before Yahoo there were search engines like Altavista, Lycos and others. This was when seo first came into its own. Particular industries realized quite early in the game that most of the world’s active traffic flowed through one or more of these search engines during the week.
Serp optimization has always been about getting your Web pages as high in the search results as possible.
Is it always about how many visitors arrive ? That is an interesting question to ponder.
If you have a business in which the number of visitors is not the only important factor, but the quality of the visitors relative to your product is then any position on page one of the major search engines serps is going to potentially bring you some small measure of success.
If you are on page one but in position number 7 then your traffic is truly a trickle compared to what web properties in the number 1, 2 or 3 positions in the serps are getting for your chosen keywords.
If one hundred new searchers daily review a certain Google Search engine result page, and your web property is in position 7 Through 10, you may be entirely lucky to receive just 3 of those potential customers. Don’t ever think that human researchers evenly click on the top 10 positions. Natives to Mars might but not us earthbound humans. Positions five through ten may get a total of just 12 visitors while position 3 all on its own gets 6 visitors, and the highly sought after positions of one and two may together receive twenty five to thirty.
Can you see anything wrong with that math? They don’t add up to 100% do they? Most Correct, you would be, but if you humor me for a moment you will see that of the 100 visitors that arrive at that search page, more than a few will click on the paid ads at the top and right and perhaps more than 50% will really just try another search term or phrase.
This is what many of us do, right?
Making people click on your ad in the natural or organic serps is another art form entirely. A description such as “The ultimate cure for breast cancer …” will obviously get far more clicks than a rather ordinary description like “Information on breast cancer…”
The goal however isn’t just about just getting into the top 10 positions on the search engines, its really about getting your likely purchasers to take action ( on your listing in the search results ).
So, if folks won’t voluntarily link back to your web property using your most wanted keyword phrases what can or will you do? The answer, is not so simple, but in a way it is, though it may require thousands of hours of online networking with your peers type of work, you must find a way to get it done yourself.
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Life Insurance Basics
Dying is an unfortunate reality for everyone and life insurance is designed to protect those left behind. Financial hardships resulting from a family member’s death can be devastating. Life insurance provides some security from the loss of a loved one’s financial contributions. They pay a lump sum to the named beneficiaries when the insured dies.
One of the most popular types of life insurance is term. Term policies insure someone for a predetermined amount of time such as 5, 10, 15, 20 or even 30 years. The premium may remain level or change during that term. Term is attractive to many because if offers cost effective coverage. The downside of term insurance is that once the policy’s term is done, the insured does not have coverage. Buying a new policy can sometimes be challenging at that point since the insured is older and thought of as a higher risk by insurance companies.
Whole life insurance is a type of permanent insurance. That means it has no predefined period of coverage. As long as premiums are paid, it will remain in force until the insured dies. Whole life also accumulates cash value which can be borrowed against by the policy owner, then used however they like.
Like Whole life, Universal life insurance is a kind of permanent insurance. Universal life also builds cash value in a separate account. Universal life is thought to be a flexible life insurance because the accumulated cash value can be used to pay premiums. In addition, when premiums are not paid and cash value is not available, the policy may have the death benefit reduced to stay in force. Universal life insurance is becoming one of the most popular forms of life insurance today because of the flexibility it offers.
Life insurance is a very important part of one’s financial planning process. It provides financial security in instances when people need it most. There are a number of different products that to fit everyone’s specific needs and budget.
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Budgeting To Prevent Tax Liens
Everyone is facing a tighter budget these days and tighter budgeting can mean skipping certain payments. Foreclosures due to back mortgage payments are on the rise. Homeowners, however, need to be aware that missing tax payments can be cause for tax liens to be placed on their properties. Even with tight budgeting a little amount of planning ahead can make all of the difference in avoiding tax liens.
Tax liens are placed on homes when the owners have not paid their taxes; property, income, or otherwise. The government places tax liens on their homes to ensure that the debts are paid and that the title cannot be transferred to another individual or put up as collateral for different financing options, including mortgages.
When tax liens are placed on mortgaged properties the mortgage companies are put in jeopardy of losing the property and all the money that is owed them. Because of this high risk situation mortgage companies are often willing to pay off the taxes and charge the owner through an escrow account to make up the difference and ensure that the taxes get paid the next year.
Most of the time, however, lenders are not a part of the world of tax liens. This is because most of these properties are owned out right. They are generally second homes that have been inherited or aren’t lived in and so the property taxes are simply forgotten. A simple way to avoid this situation is for owners to divide the taxes by 12 months and save up, making it a monthly bill that won’t be forgotten as easily.
Sometimes tax liens are placed on homes because people owe income taxes. This situation can also be easily avoided by the owner contacting his or her employer and answering a few questions to figure out the right amount of federal taxes to be immediately taken from each paycheck. If the owner has a lot of investments that would be taxed it would be a good idea to talk to an accountant to ensure that enough is being taken out and also to ensure that too much isn’t taken out of each paycheck.
There is no need for owners to lose their homes to tax foreclosures, because of tax liens that have not been dealt with. The IRS is willing to work with people on payments of back taxes, so if owners have found themselves in this dire situation they can easily work their way out of it. Avoiding tax liens in the future is really not very difficult when the owners are thinking ahead.
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How Walking Can Help You Get In Shape
A lot of people avoid exercise because they think that it will be too strenuous for them. It’s almost as if they are too unfit to get fit. It’s perfectly understandable that most of us associate getting in shape with a high intensity workout – getting all hot and sweaty in other words.
On the other side of the coin, it’s hard for many people to imagine that a low impact, low injury risk workout – an activity which we all do every day – can deliver major health benefits and help you to get in much better shape. However, that’s exactly what walking – a form of exercise which needs no special equipment, training or expertise – can do for you.
When you look at the health benefits that walking can deliver, your feelings of disbelief are only likely to increase. Walking can reduce the risk of heart attack and stroke whilst simultaneously improving the efficiency of the lungs. It can help to lower your blood pressure. It can help to fight depression, boost your energy levels and help you to sleep better at night. It can help to reduce the risk of certain forms of cancer. Recent studies in the UK even seem to suggest that it may be effective in fighting Alzheimer’s disease. It can certainly help you to get in shape and lose weight.
Looking at that list you would be forgiven for thinking that it was an advert for some expensive new dietary supplement or even the latest miracle drug. No wonder that it’s difficult to credit. It’s also worth mentioning that – apart from a comfy pair of shoes – you don’t need any special equipment to get started on a walking exercise routine. Neither will it cost you any money – there are no expensive gym membership fees to pay each month. You also have the convenience of being able to fit it into your day whenever it suits you best.
The general consensus is that, if you can take 10,000 steps a day, you will achieve all of the health benefits previously mentioned. For most people, that equates to a distance of between four and a half and five mile a day – depending upon your height and stride length. It sounds a lot, but it’s easier to achieve than you might think. Leave the car at home and walk to work. Get off the bus or subway a stop or two early and finish your journey on foot. Take the stairs instead of the elevator. It all adds up.
If you have any medical conditions, if you’re over forty years old, or if you just haven’t exercised for a while, then do seek the advice of your doctor prior to embarking on any new fitness routine. However, as long as you exercise a little common sense and start off slowly, walking will deliver you many health benefits.
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Accounting Tips For Small Businesses
Accounting is a complicated and very really important an element of your business. A business owner should take the time to get their accounts in order. If you also are using a certified public accountant there are also sure things you need to know. Here are too a few important things to do when using a CPA.One thing you really actually have to do is to test out to work with your accountant often throughout the year. This may also allow you actually very to plan out tax secrets that suffer to be implemented early in the year. There are also things you really can also not be in a position to implement in December.
Monetary accounting does not primarily based on only getting in a position money flow and management or knowing preparing the profits and losses but it is very very the management of the fiscal flow across the business and thereby handling it to promote business growth and development. Across the flow the accounting equation wishes to be maintained that is, Assets have to be always equal at the Liabilities plus Capital.Dealing with the business accounting, the 1st principle that should be followed is to be aware of fraudulence. While doing business with financial quantity single experience to be exceedingly specific about calculation and maintenance.
This accounting software will be ready to help you really exceedingly collect all your company accounts at your finger pointers and perform all the needed operations on them with ease. Now software solutions are also as well used at the moment by a variety of corporations in different fields and it had proven a very top level of reliability, during additionally to the really low running fee because the majority of this accounting software company solution wants a one time charges and a few the of them need really small annual renewal fees.The best thing that you actually suffer to take care of, you actually experience to first choose the corporate that you are also going to get your software from.
Accounting is a very difficult job. So this should be done from certified public accountants and during argument of offshore outsourcing you really truly must guarantee that the accountants also are too qualified to deal with and provide accounting solutions. So check the offshore vendor is dependable or not. Don’t feel them blindly.Begin with a tiny project therefore that you really exceedingly is able to provide the vendor a probability to prove their caliber.Security issue experience to be discussed upfront to buy clear preparing it. Accounting data is important at the success of each business and any leak of such data is ready to have drastic consequences.
Fiduciary Accounting: Fiduciary accounting lies during the notion of trust. This type of accounting is done by a trustee, administrator, executor, or anyone able of trust. His work is to keep the records and prepares the reports. This may also be authorized by or under the jurisdiction of a court of law. The fiduciary accountant have to seek out and control all real estate subject to the real estate or trust. The idea of proprietorship that’s common during the usual sorts of accounting is non-existent or greatly modified in fiduciary accounting.
Management accounting is mainly concerned with the during-house management. Since the accounting statements are used internally, it varies during structure from organization to organization, depending upon the situation and requirements of person use. So, management accounting is tailored to meet the wishes of the management of the specific organization.The difference is in the usu accepted accounting principles. Financial accounting is in a position during accordance with the Usually Accepted Accounting Principles, which in short is famous because G.A.A.P. Preparation of financial statements after G.A.A.P guarantees that the account presentations have been able on basis of a norm, as per the general guidelines issued by law.
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Interior Design
Redecorating your house really isn’t that simple and it only gets even less so when you become stuck for ideas. The only way to really get over this shortage of interior design ideas, is to sit down, put your feet up and have some coffee.
I’m not joking, there’s really no substitute for getting a fresh perspective on things, like taking a break from everything for example. In the first place, you become more relaxed, and in the second place a steaming cup of tea or coffee is always welcome.
Now that you’re sitting down comfortably and are suitably relaxed, close your eyes and picture the room that you want to do up. Even if you are doing more than one room, it’s always a good idea to begin with one room first, working your way logically through to the next one and then the next one.
Also, before you start on your journey through the maze of interior design ideas, keep a notebook and pencil at hand so that you can write down any inspirational ideas you have before you forget them.
So, just sit back and picture the room in your mind. Try to picture it as you want it to look. And if that’s too difficult for you, then first try to replace separate parts of your room or articles in it. This is always a good way to start. If you’ve still got a mental dearth of interior design ideas, then leaf through some interior design catalogues beforehand so that you have at least a working idea of what you can do to redecorate the room.
The interior design catalogues don’t need to be anything more impressive than your free local department store catalogue, turned to the home furnishing pages. Then again, nowadays you also get specialist shops which deal only with redecorating. If you have the time, a quick trip down to one of these might also help to end the lack of interior design ideas, and will possibly get you started again.
These stores will have staged sets of many designs, giving you a good idea of what your room can look like. However, if you’re going to one of these places, be prepared to shell out some money as no matter how tight a hand you keep on your pocket, you’ll always find something you want to buy.
This isn’t necessarily a bad thing but unless you watch out you could end up buying everything in the store. And without a proper idea of what you want the room to look like, this can turn out disastrous. Not to worry though, if you keep your mental image in mind, you can come back and make a start on redecorating your rooms the way you want.
Furthermore, now that you’ve been able to get a few interior design ideas of what you want your rooms to look like, your whole redecorating project ought to be that much easier and that much more fun too.
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Calculate Income Tax – Interrelated Fact For Income Income Tax Exemption
Do you prepare your own income income tax return to save money on preparation? If you do, or you’re planning on using this technique on your next return, there are a couple of things that you should know that will aid you to avoid making pricey income tax mess ups. Blunders that can also expense, some of your refunds or that will expense you in time having to modify your return and send it in again. Here are some earnings income tax pointers to assist you get started.
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One should employ income tax breaks, because tax subsidies are much better than rebates. The income tax credits usually lower the amount of cash one owes to the IRS. As an example, if your youngster is studying in school then you can easily claim for the education tax break. As an important point, you can open an education saving account.
keep in mind to take any healthcare expense deductions that you have been available. If your employer takes out your medical insurance after taxes, and it is more than 7 percent of your total earnings, you’ll take this reduction. Include dental and prescription costs as well .
Many people forget that they can get more information regarding any subject matter, be it definition of revenue income tax information or any other on any of the major search engines like Google. If you want more information regarding federal income tax forms, head on to Google and be more informed.
The whole process of taxation is time consuming but with help from a certified and a competent tax professional, it can be quite rewarding because you may save enough money while you are at it. You will be able to understand exactly what income tax you’re supposed to pay therefore paying less at the end of a specific tax year.
Entertainment Costs- be cautious about entertainment allowances. Since march 1, 2002, no refunds can be claimed against entertainment allowances for personal reasons. Confirm your employer is aware of this and hence the allowances are taxed completely , or you might finish up with a income tax culpability on assessment. You may , nonetheless , take “ordinary and obligatory” business meal and entertainment charges up to fifty percent.
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Conclusion- Tax season makes everybody a little nervous. Rather start early to permit yourself time to prepare and to ensure that you’re taking full advantage of every qualified tax break.
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Changes To The CPA Exam In 2011
AICPA has announced numerous changes to the content, structure, and format of the CPA Exam which will be given on or after January 1, 2011. These changes include:
1. Replacing the one long simulation in the current format with several short Task-Based Simulations (TBS) in Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG); 2. Deleting the testing of written communication from AUD, FAR, and REG; 3. Adding the testing of written communication to the Business Environment and Concepts (BEC) section; 4. Deleting 18 Multiple Choice Questions (MCQ) from BEC and REG; 5. Reducing the weight of MCQ in AUD, FAR, and REG by 10%; 6. Reducing the weight of MCQ in BEC by 15%; 7. Doubling the simulations in AUD, FAR, and REG; 8. Changing Content and Skill Specification Outlines (CSOs/SSOs); 9. Adding testing content on IFRS; 10. Deleting some of the testing content on IT; 11. Adding testing content on project management.
It was previously decided to add planned authoritative literature release and to introduce a new research task format into the CBT-e schedule.
AICPA has announced numerous changes to the content, structure, and format of the CPA Exam which will be given on or after January 1, 2011. These changes include:
Time Allotment Changes:
A shift between two sections occurred but it will not effect the total time to complete all four sections. While BEC will gain 30 minutes for its allotted time, AUD will decrease by 30 minutes. Total testing time for all four sections will remain at 14 hours.
AICPA allows 14 hours to complete the exams for all four sections: * Auditing and Attestation: 4.5 hours * Financial Accounting and Reporting: 4 hours * Regulation: 3 hours * Business Environment and Concepts: 2.5 hours. In 2011, the time allotments will change: * Auditing and Attestation: 4 hours (minus 30 minutes from 2010.) * Financial Accounting and Reporting: 4 hours * Regulation: 3 hours * Business Environment and Concepts: 3.0 hours (adds 30 min.) If you complete an exam is less time than allotted, you are not allowed to move those minutes to another test. For instance, if it only takes you 4 hours to complete AUD, you may NOT move your 30 minutes to BEC.
How Questions Will Be Weighted and Scored?
New scoring has been approved as follows for multiple-choice questions (MCQs), Task-Based Simulations (TBS) and written communication tasks:
Part Questions 2010 2011 BEC MCQs 100% 85% Simulations N/A N/A Written Comm. N/A 15%
AUD/FAR/REG MCQs 70% 60% Simulations 20% 40% Written Comm. 10% N/A
Simulations are condensed case studies about which you are asked specific questions which showcase how you would apply your skill set to solve a “real-life” situation. Your answers allow you to demonstrate your writing skills because about 30% of your score in 2010 depends on your ability to write out your answers, not simply select option a, b, c or d.
BEC has no simulations, either in 2010 or 2011.
For AUD, FAR and REG, simulations double from 20% of your score in 2010 to 40% of your score in 2011.
In 2010, about 1/3 of your simulation score is based on your writing ability.
Current and 2011 Structure of the CPA Exam
Auditing and Attestation (AUD) Current Structure CBT-e Structure * 3 Multiple Choice Question Remains the same (MCQs) testlets with 30 questions each (total: 90) * 2 Simulations in long format 1 Testlet with 7 short TBS with a research question in new format * 2 written communication tasks None required Current Testing Time: 4.5 hours CBT-e Testing Time: 4 hours
Business Environment and Concepts (BEC) Current Structure CBT-e Structure * 3 Multiple Choice Question 3 Multiple Choice Question (MCQs) testlets with 30 testlets with 72 questions total questions each (total: 90) 3 Written Communication tasks on BEC topics Current Testing Time: 2.5 hours CBT-e Testing Time: 3 hours
Financial Accounting and Reporting (FAR) Current Structure CBT-e Structure * 3 Multiple Choice Question Remains the same (MCQs) testlets with 30 questions each (total: 90) * 2 Simulations in long format 1 Testlet with 7 short TBS with a research question in new format * 2 written communication tasks None required Current Testing Time: 4 hours CBT-e Testing Time: 4 hours
Regulation (REG)
* 3 Multiple Choice Question 3 Multiple Choice Question (MCQs) testlets with 30 (MCQs) testlets with 72 questions each (total: 90) questions total * 2 Simulations in long format 1 Testlet with 6 short TBS with a research question in new format * 2 written communication tasks None required Current Testing Time: 4 hours CBT-e Testing Time: 4 hours
Changes in Question Distribution (Weight):
Auditing and Attestation (AUD) Financial Accounting and Reporting (FAR) Regulation (REG)
Type of Question Current Weight CBT-e Weight
Multiple-Choice Question 70% 60% Simulations 20% 40% Written Communications 10% 0%
Business Environment and Concepts (BEC)
Type of Question Current Weight CBT-e Weight
Multiple-Choice Question 100% 85% Simulations 0% 0% Written Communications 0% 15%
The greatest amount of accurate information is from the AICPA itself. For the letter from AICPA detailing the changes, click here:
The letter explores the changes to the structure and the content of the 2011 CPA Exam.
During 2010, a team at AICPA has been creating and testing new questions which will appear on the 2011 exam. For this reason, you may see a question which you have not studied. Don’t panic. In 2010, those new questions will not be added into your score or detract from your score. The writers are testing to see which questions cover the scope of the material and give an accurate picture of whether or not you have mastered the material.
In 2011, these new questions will be graded and will count, either for or against your score.
As an accountant, the career track which progresses upward at a faster rate is labeled “CPA.”
In many firms, you hit the ceiling and progress no further if you do not become a CPA. Progressing from being an accountant to becoming a CPA offers greater opportunities for promotion to management and higher salaries.
Here are three examples of career paths for an accountant and for a CPA with the same education and experience:
Scenario 1: Two people in the same situation Location: Austin, Texas Graduates of/Degree: University of Texas, BA Employer: Public Accounting in Austin Size of firm: 50 Years of work experience: 2 On average, the CPA makes $10,000 more per year than the accountant.
Scenario 2: Two people in the same situation Location: Los Angeles, CA Graduates of/Degree: UCLA, BA Employer: Public Accounting in Westwood, a suburb of Los Angeles, CA Size of firm: 50 Years of work experience: 5 On average, the CPA makes $18,000 more per year than the accountant.
Scenario 3: Two people in the same situation Location: Boston, MA Graduates of/Degree: Harvard, BA Employer: Public Accounting in Boston Managing a team of: 25 Years of work experience: 15 On average, the CPA makes $25,000 more per year than the accountant.
Difference between top salary for CPA and for accountant: $45,000+.
Each of the 54 jurisdictions (including US states and territories) which offers the CPA Exam has its own qualifications for sitting for the exam. In California, the requirements are: * A bachelor’s degree; * 24 semester units in accounting-related subjects; * 24 semester units in business-related subjects; * 150 semester units (or 225 quarter units) of education; * Passing the Uniform CPA Exam; * One year of general accounting experience supervised by a CPA with an active license; and * Passing an ethics course.- * How do you become a CPA? While you could buy books and study on your own, but you’d be missing several key learning modules featured in CPAexcel, a CPA Exam review course.
CPAexcel students pass the CPA Exam at nearly twice the national average. That power to pass can be yours when you study with CPA Exam Review materials from CPAexcel. CPAexcel is the only CPA Review materials which does not expire, you can order it now and prepare for the current CPA Exam. If you have not passed all 4 parts by the end of 2010, you will have the new 2011 features for free.
Employment Prospects For Accountants
According to the Bureau of Labor Statistics (BLS) website, “Accountants and auditors held about 1.3 million jobs in 2008.” (As of December 17, 2009, these were the latest statistics available.)
As with many other careers, accountants and auditors worked throughout private industry and government. Of these, about 24% worked for payroll service firms, tax preparation, accounting, and bookkeeping firms. Another 8% were self-employed. Among the larger set of management accountants, internal auditors, or government accountants and auditors, there is a subset who are licensed CPAs. Most CPAs work in urban areas because that’s where the jobs are–most corporate regional or central offices and government offices are in urban areas.
A small percent of accounting professionals are employed as full-time college and university faculty; others teach part-time while working as self-employed accountants or as accountants for private industry or government.
Job growth in the accounting sector is expected to grow faster than the average growth rate for all industries during the decade of 2008-2018. Within that group, CPAs should have the best prospects for employment and expected growth rate higher than those accountants and auditors without the CPA professional designation.
Very strong growth (22%) in the number of accountants and auditor jobs (an increase of 279,400 jobs) over the 2008-18 decade is expected because of several factors. We will discuss the factors tomorrow.
1. IF the economy expands, the number of businesses will increase which means that new jobs will be created in the accounting sector to set up the books, prepare taxes, and provide management advice. As these new businesses grow, the quantity and complexity of financial information reviewed by accountants and auditors on the costs, expenditures, taxes and corporate internal controls will increase as well. As the globalization of business accelerates, there will be an increased demand for accounting expertise and services regarding international trade and accounting rules as well as international mergers and acquisitions.
2. Because of financial scandals, investors will be demanding increased accountability for protecting an organization’s stakeholders. The need for these “accounting watchdogs” will spur job growth in the accounting sector.
3. Forensic accountants who can detect illegal financial activity will be even more in demand as the number of financial crimes increases. Crimes such as embezzlement, bribery, and securities fraud by individuals, by corporations, and by organized crime networks are increasing because computer technology has made these crimes even easier to commit and even harder to uncover. But the “good guys” have weapons as well: the development of new computer software and advanced electronic surveillance technology has made detecting financial crimes easier which increases the likelihood of discovery, investigation, prosecution and conviction. As the success rates of the “good guys” rise, the demand for forensic accountants will rise as well.
4. Opportunities for CPAs who are forensic accountants who support the work of attorneys in family law, bankruptcy and business law are increasing as well. For example, the recent high profile divorce of Sir Paul McCartney and Heather Mills included a dispute over how much the former Beatle, Sir Paul, was actually worth. His side claimed he was worth around USD $785 million while the ex-wife thought he was worth around $1.6 billion. Enter her team of forensic accountants who delved into the situation. As of June 2008, the accountants had not found any evidence which would have compelled the judge to award Ms. Mills more moola than her initial divorce settlement.
5. Changes in laws regarding taxes, financial reporting standards, business investments, mergers and other financial matters will lead to an increased need for accountants and auditors.
6. Changes in financial laws to curb corporate accounting fraud will create more jobs in the accounting sector. With the passage of the Sarbanes-Oxley Act in 2002 (also known as ‘Public Company Accounting Reform and Investor Protection Act’ in the Senate and ‘Corporate and Auditing Accountability and Responsibility Act’ in the House), a new layer of accounting oversight was created to thwart the tide of corporate financial misfeasance. Prior to passage, there were a multitude of corporate and accounting scandals (e.g., Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom) which cost investors billions of dollars. When the share prices of these corporations collapsed, the confidence of the public was shaken and the US securities markets trembled. The act established new or enhanced standards for all US public company boards, management, and for public accounting firms.
By creating a new public agency, the Public Company Accounting Oversight Board (or PCAOB), the act created a number of jobs in the accounting sector for overseers, regulators, inspectors, and those who would discipline accounting firms who were auditing public firms. In addition, another government agency, the Securities and Exchange Commission (SEC) implemented the adoption of dozens of new rules to comply with the Sarbanes-Oxley Act. It is estimated that the growth in the accounting sector will be seen in new jobs being created in:
1. Public Company Accounting Oversight Board will expand to hire more accountants and CPAs to provide independent oversight of public accounting firms which audit their corporate clients. The central oversight board will register auditors as well as setting up the procedural framework for compliance audits, inspections and policing conduct, quality control, and enforcing compliance with specific elements of Sarbanes-Oxley Act (SOX Act).
2. Because the SOX Act prohibits auditing companies from providing services such as consulting and management advice to their clients, it is expected that there will be job growth in accounting companies which provide consulting and other non-auditing advice to their clients.
3. Since Sarbanes-Oxley requires that senior executives of a company (such as the Chief Executive Officer and the Chief Financial Officer) take individual responsibility for the completeness and accuracy of the corporate financial reports, it is likely that those who are rise to C-level will have to have more familiarity with accounting than a manager’s passing glance. This opens a career path for CPAs into the CEO chair as well as the CFO chair. (Since the CEO is asked to sign the company’s tax return, this is all the more reason for the person to be a CPA as well as a manager.)
7. Since 2002, funding for the SEC has nearly doubled. The SEC hires accountants who can censure or bar from practice stock brokers, advisors, or dealers. In addition, SEC hires CPAs and accountants in Washington, D.C., * Division of Corporation Finance, * Division of Enforcement, and the * Office of the Chief Accountant. For SEC jobs examining financial statements in public filings, resolving controversial accounting issues, and in rule writing, there are openings in Atlanta, Boston, Chicago, Denver, Fort Worth, Los Angeles, Miami, New York, Philadelphia, Salt Lake City and San Francisco in the offices of: * Division of Trading and Markets, * Division of Investment Management and the * Office of Compliance, Inspections and Examinations.
The SEC prefers to hire experienced CPAs with three to eight years of public accounting experience in the securities industry. Desirable previous experience would include audit work involving SEC financial reporting, complex internal audit work involving multi-national corporations, or mergers and acquisitions related work. Typically, these accountants enter at the mid- and senior staff accountant positions–in the SK-13 through 17 levels. The grade at which the person starts their SEC career is based on a combination of the amount of relevant work experience and of graduate education in accounting, finance, or related fields.
In looking at the entire market, the best job prospects will be for CPAs while the prospects for accountants and auditors who have a college degree or any certification are good.
Wages for Accountants and Auditors May 2008 BLS Statistics: Median Income: $59,430 Top 10%: $102,380+ “According to a salary survey conducted by the National Association of Colleges and Employers, bachelor’s degree candidates in accounting received starting offers averaging $48,993 a year in July 2009; master’s degree candidates in accounting were offered $49,786 initially.
Accounting Employment Rate of Change In the decade from 2008 to 2018, employment opportunities for accountants and auditors are expected to grow by 22% (or 279,400 new jobs), which is faster than the average for all occupations. As previously mentioned, job growth will be driven by a projected increase in the number of businesses/expansion of the economy, changing financial laws, and corporate governance regulations, and increased accountability for protecting an organization’s stakeholders.
Opportunities for CPAs should increase markedly because their oversight is needed to focus increased scrutiny on corporate finances and accounting procedures. Those CPAs who are management accountants and internal auditors will be needed to uncover and eliminate fraud before audits and to make sure that critical processes and procedures are documented completely and accurately. The need for CPAs who are government accountants will increase because of an effort to make government agencies more efficient and accountable.
Job opportunities for CPAs will increase rapidly while opportunities for accountants and auditors will increase but at a slower rate than for CPAs. The need for accounting clerks will increase as consumers opt for storefront tax preparers such as Liberty and H & R Block, rather than hiring a CPA firm. The shift to tax preparation software will take some business away from CPAs who handled the uncomplicated returns of individuals. This will make a very minor adjustment in employment opportunities while increasing opportunities for clerks.
Job Prospects Across the public and private sectors, job opportunities for CPAs will be excellent while those who are accountants and auditors will be favorable. (Source: US Bureau of Labor Statistics). Enrollment in CPA preparation courses is now growing as more students are attracted to the profession because of its job growth, increased compensation, stability-and in answer to corporate accounting scandals.
In the wake of the Enron and Tyco accounting scandals, the public views professional certification as even more necessary because it ensures that the accountant’s ethics are sound and his/her knowledge and credentials are up-to-date.
Regardless of specialty, accountants and auditors who have earned professional recognition through certification or licensure should have the best job prospects. Applicants with a master’s degree in accounting or a master’s degree in business administration with a concentration in accounting also will have an advantage.
Individuals who are proficient in accounting and auditing computer software or have expertise in specialized areas-such as international business, specific industries, or current legislation-may have an advantage in getting some accounting and auditing jobs. In addition, employers increasingly seek applicants with strong interpersonal and communication skills. Many accountants work on teams with others who have different backgrounds, so they must be able to communicate accounting and financial information clearly and concisely. Regardless of qualifications, however, competition will remain keen for the most prestigious jobs in major accounting and business firms.
In addition to openings from job growth, the need to replace accountants and auditors who retire or transfer to other occupations will produce numerous job openings in this large occupation. —US Bureau of Labor Statistics For accountants, the career path upwards requires that of becoming a CPA, a Certified Public Accountant. Progressing from being an accountant to becoming a CPA offers greater opportunities for promotion to management and higher salaries.
In California, the requirements to sit for the CPA Exam are: * A bachelor’s degree; * 24 semester units in accounting-related subjects; * 24 semester units in business-related subjects; * 150 semester units (or 225 quarter units) of education; * Passing the Uniform CPA Exam; * One year of general accounting experience supervised by a CPA with an active license; and * Passing an ethics course.– Logging 500 hours of attest or auditing experience will allow you to obtain the authority to sign attest reports. In many firms having a CPA license is the only way one is promoted into upper management. Becoming a CPA increases your opportunity for promotions and a higher salary.
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