5 Mistakes by CPAs

5 Common tax and accounting mistakes that are costing CPA firms BIG!

Posted by  on 13 March, 2015  5 minute read

We are in the midst of Tax Season, so here are some common mistakes being made by CPAs which are costing U.S. businesses billions each year due to incorrect reporting of business income and employment values.

  1. Closing the books early

    Understandably accountants are swamped with work during the tax season but a mistake made by many is rushing to close the books early prior to all the required data being collected.

  2. Incorrectly applying and adhering to state and city tax regulations

    Tax laws are changing regularly and it is sometimes very difficult to keep track while keeping up with your workload. This causes firms to miss out on some of the benefits of local tax incentives.

  3. Failing to use the best tables resulting in not maximizing depreciation

    Generally this is down to firms not having up-to-date accounting software or not being able to retain qualified staff.

  4. Saving corporate financial/tax data to personal devices

    Yes it is convenient for your employees to save the files to their devices so they can complete the work in the comfort of their home or on their commute but their devices are not always secure, putting your company at risk. Make a point of telling your employees it is against your company policy to do so because of the risk of data being hacked or leaked.

  5. Inputting data incorrectly

    It may sound obvious but you are inputting huge amounts of data on a day to day basis. It is very important to catch those mistakes being made to ensure it does not result in an audit or penalty.

    Mistakes like these are costing CPAs’ their reputation and are costing their clients money. If these mistakes keep occurring and clients find out it could lead to a loss of clients. Be aware of the mistakes to ensure your firm is not one of those contributing to the billions of dollars being lost in penalties to the IRS. Also know the 5 common problems faced by CPAs.