Terry Xiao Blog

CPA Exam Reviews: Getting ready to sit for the CPA Exam means that you need to know the CPA Exam Schedule (and set your test date) and then use a variety of study materials to prepare to pass the exam.

Depending on your learning style, you might select certain of these study tools: * CPA Exam Sample Questions * CPA Exam Forum and Student Discussion Groups * Private Study Groups * CPA Exam sample and CPA Exam Simulations * CPA Exam Review books, including Electronic and printed study texts * Professor Mentoring * Professors’ video lectures and printable slides * Diagnostic Exams * Proficiency Questions * Digital CPA Flash Cards * Performance Metrics * Exam Tutor, and * Final Review. There are a number of providers for CPA Exam Reviews.

CPAexcel recruits top university accounting professors to mentor and author their study materials while other companies simply hire grad students who hit “Play” on a Power Point presentation or a canned video lecture. CPAexcel publishes new textbooks twice a year while another course updates their books only once each year, which means those students are possibly paying for textbooks which are not current enough for the exam. CPAexcel’s books are always current!  Read more...

When Will the CPA Exam Be Given in 2010? CPA Exam 2010: There will be six exam windows in 2010. A testing window consists of the first two months of any quarter: January-February, April-May, July-August and October-November. The CPA Test is offered up to six days each week during each testing window.

Once you are approved to sit for the exam, you should make an appointment with Prometric for a particular regional testing center on a particular day and time. You cannot state that you would like to be there sometime during the week of the 21st. You can schedule your appointment for a specific testing location and “reserve” your seat for that day and time by going online at Prometric’s website or by contacting your local test center.

It is suggested that you schedule early: as much as 45 days before your preferred date to get the date, time, and location you prefer. The 2010 Uniform CPA Examination will be delivered at more than 300 Prometric test centers in the U.S. via a computerized platform. (Not every Prometric center offers the CPA Exam so be sure to check. Never assume anything.)  Read more...

Hassle-free small business software is all many companies need. In fact, choosing powerful accounting software may well be a big mistake. There can be more cost to an accounting system than first meets the eye. The initial cost of a system is just the start. The ongoing costs are the ones that may get you. The appropriate accounting programs should save you time, money and stress too. Here are a few simple points to follow.

A Very good Fit.

Many small businesses don’t succeed due to inferior financial controls. With good controls on the money part of your business, you have a more effective chance of success. You ought to buy a system that suits what you do. In nearly all cases there is a ready to use solution already being used by hundreds of companies just like yours. A major software company like Peachtree have simple systems which should be just the answer.

Uncomplicated To Understand.

A big cost of any software is the learning cost. Training and learning have high costs. Getting more software than you need forces you to pay the learning cost even though you do not use the power of the software. Don’t acquire less than you need, but do not procure far more intricacy than required either. And make sure there is good support when things go wrong or you need help.  Read more...

There are many different working environments and responsibilities within the accountant career. However, it is their main objective focuses on maintaining and assisting clientele financial recorded, preparation of tax forms and making sure they’re submitted to the proper agencies, assisting with financial advice, and making sure that their client gets the best tax deal possible.

Accountants generally spread out over many different fields, with a small portion being within government agencies or facilities, and the rest within the private sector. Some may also choose to work for themselves, whether in the comfort of their own home or office, often being responsible for their own clientele and overall business.

Those who work from their home may often see a different mix of things, depending on their clientele base. For instance, an accountant may assist with regular tax matters with the majority of their clients, while offering regular payroll services to others on a weekly, bi-weekly or monthly basis as well. Some may also offer services in investment planning, budget analysis, assistance with accounting legal help, and other forms of financial advice.  Read more...

As one year ends and the next begins, interest regarding the future of the tax system is natural. In regards to property laws, many of the changes being considered by the Tax Working Group could prove detrimental to those who invest in real estate.

For some time the government has been proposing various modifications that will result in higher taxes being paid by property investors. It is unlikely that any of the proposals will result in immediate change but it is a good idea to become aware of what’s on the table.

As it gets closer to the time when a definite determination will be made – most likely soon after the beginning of the year – it is appropriate to consider how these changes may affect investors.

It is expected that the following revisions will be considered for inclusion in the new tax system:

* While individual tax rates will decrease, the rate of GST will increase in order to make up for the deficit. Corporate and trustee rates will become more closely aligned.  Read more...

For the married couple, it is truly essential that an estate is properly structured, legally protected, and the disposition of assets in the case of separation clearly defined. If you have not yet started a trust for your assets as a property investor, perhaps this scenario will convince you of the need to do so.

The Case of the Trust-Less Divorce

In most cases, divorce is a messy matter. It is highly unlikely that the two parties will be able to reach an amicable agreement as to the disposition of assets. Even with a trust, in the absence of a Property Relationship Agreement a legal battle may ensue because there is still the issue of what to do with the assets in the trust.

Of course, the first step will be hiring a lawyer for each side. As we all know, legal fees can quickly add up to thousands of dollars. Consider the property investors who have a $500,000 house listed as an asset. Is a combined $100,000 in legal fees worth the argument? It may not make much sense, but this is what many couples end up doing – paying money to fight over a property that is still mortgaged.  Read more...

When it comes to investments, there are few that are always as reliable and easy to finance as real estate. Commercial and rental properties allow the investor to actually make money on the deal even while it is being financed. Certainly the real estate market has its up and downs, but the investment will always appreciate, unlike shares in the stock market.

Getting Started

The first place to start is by finding a property. The key to making a profit is to find a high-value property that is offered at a discounted price, and one that is already rented or has good potential to be fully leased – creating a positive cash flow situation.

The next consideration is financing. The home owner who has equity in their house can take out a line of credit against the value of the property. This line of credit, or second mortgage, is used to fund the deposit on the new real estate purchase. With an 80% loan, this gives the investor an idea of the price range they should be searching in.

Example Investment

Here is an example of property deal that would make a good investment.  Read more...

Recent changes made by the Finance and Expenditure Select Committee affect many property investors in regards to trusts set up for the placement of assets. The definition of associated persons was just one new area that complicated things for the investor; the Trust to Appointor test cited in section YB 11 is another area that perhaps needs further explanation.

Associated Persons Rules

The association rules apply to the relationship between land dealers, real estate developers or builders, and other business entities involved in buying and holding property. The rules were put in place because of a concern that associated businesses would work together to buy a property for the express purpose of holding it and avoid the capital gains tax.

An unexpected by-product of these rules is that professional advisors who are designated as appointors to an otherwise unrelated trust are considered an associated party. The appointors’ assets, as well as those of his or her other clients, are also considered tainted under these rules.

Taxation Remedial Bill: Section YB 11

What YB 11 states is that a trust is associated with its appointors. The association exists because of the tripartite test whereby an association exists between two parties where both share a common associate, such as a professional appointor.  Read more...

Indpendent CPA auditors are like referees in the financial reporting arena. The CPA comes in, does an audit of the business’s accounting system and methods and gives a report that is attached to the company’s financial statements. Publicly owned businesses are required to have their annual financial reports audited by independent CPA firms and any privately owned businesses have audits done as well because they know that an audit report will add credibility to their financial reports.

An auditor judges whether the business’s accounting methods are in accordance with generally accepted accounting principles (GAAP). Generally everything is in place and the financial report is a reliable document. But at times an auditor will wave a yellow or red flag. Some indicators of potential trouble include when the business’s capability to continue normal operations is in doubt because of what are known as financial exigencies, which could mean a low cash balance, unpaid overdue liabilities, or major lawsuits that the business doesn’t have the cash to cover.

An auditor must exercise professional skepticism, meaning the auditor should challenge the accounting methods and reporting practices of the client in order to make sure that its financial statement conform with accounting standards and are not misleading – in short, that the financial statement are fairly presented. Indeed, the words “fairly presented” are the exact words used in the auditor’s report.  Read more...