Sunday, June 20, 2010
Why CPA? Why Not?
Why did you become a CPA?
I have been asked several times over the past few weeks why I became a CPA.
Now some would say that it must be my love of the Tax Code! That is so far from the truth.
When I went to college (by the way I was really, really good in math) I majored in pre-med. Pre-med to Accounting?
Oh my, what a difference. One day while hanging out on campus, I thought, “Do I really want to spend the next 8 to 10 years in school of some sort while I work to become a doctor?”
The answer came back, “NO!” But what could I do to help people?
I thought about finance but wasn’t attracted to it (or should I say to the students that were in that major?). So, accounting drew me in.
To say it’s not about taxes isn’t entirely true. I do enjoy that aspect, but really it is about helping people and businesses grow. Even in this economy there are ways to help, from maximizing tax savings to helping restructure business operations.
Restructuring makes them more profitable and puts them in a position to take advantage of the market when the economy does turn.
This week I explained to a client, who is self employed, that we could take advantage of a SEP for his business and not only save taxes, but also put money away for retirement. I was able to show him that by investing approx. $18,000 in a SEP (which, by the way, he has until he files his tax return to fund), that he would save approx. $7,000 in taxes, at 39% return on his investment. I don’t know about you but I don’t
know where else can somebody get a 39% return immediately an investment.
His reaction was total amazement. None of his other tax professionals had ever explained about saving on taxes while getting the return on investment. His next question was how can he do more this next year? The answer is by planning earlier in the year--like now!
The first thing he did was schedule a meeting next week to start year-end planning for 2010. This is why I help people to save money on taxes and for retirement.
I love the people side of the business as a CPA, and I’m not one of those greenshade, nerdy types that are always depicted on TV. I like to call it the way I see it and advise my clients accordingly.
My new motto is Cool People hang with Cool People
There you go! CPA it is!