Frequently Asked Questions

What is accounting?

Accounting has been called the language of business. It is the process of analyzing, processing, and communicating financial information. Accounting provides a business owner with information about the company's resources, the financing of those resources, and the results the business achieves through their use.

The function of accounting is to prepare a detailed record of the company's financial affairs. Accounting also includes the interpretation of the numbers (i.e. earnings and spend) to determine the financial health of the business. It also includes the presentation, financial health, and control functions of the company. Furthermore, accounting is the preparation of tax and other required financial materials.

What is the difference between a bookkeeper, Accountant, and cpa ?

The terms ‘bookkeeper,’ ‘accountant,’ and ‘CPA’ are often used interchangeably, however their roles are qualifications are distinct. These professionals are very different in their scope of work, the tasks they perform, their licensing and professional status, and their standing with the Internal Revenue Service (IRS).

A bookkeeper is responsible for accurately recording transactions, including accounts receivable, accounts payable, inventory, and (sometimes) payroll. A bookkeeper often works internally for a small business, essentially recording all day-to-day finances.

Accountants are a level up from bookkeepers. They can prepare detailed financial statements and perform audits. However, an accountant is classified by the IRS as an "unenrolled preparer," which means he or she has no standing with the IRS. An accountant is not authorized to sign tax returns or represent clients during tax audits and other matters before the IRS. 

Alicia Almanza is a CPA. A CPA is licensed with more seniority and capabilities than an accountant. CPAs possess the highest level of tax education, certification, additional levels of credibility and expertise. A CPA is an accountant who has passed certain examinations, and met all statutory and licensing requirements to become certified by the state. (Learn more about California’s state requirements here). In addition to preparing and reviewing financial statements, CPAs also prepare tax returns for businesses and individuals, and have the authority to sign tax returns. Only CPAs and tax attorneys are qualified to represent a taxpayer before the IRS for audits and other matters. 

Can I file taxes on my own?

There is a reason CPAs like Alicia must annually complete many hours of Continuing Education to maintain their professional competence and provide quality professional services: tax law is constantly changing and evolving.

Many self-service tax softwares are advertised as making tax returns quick, easy, and affordable. However, filing taxes is not quite as simple as inputting a few numbers and hitting ‘submit.’ In fact, the most basic 1040 instruction booklet now runs 179 pages long —and this alone is packed with many exceptional rulings.

In reality, self-service software is often too generic and simplified to correctly process your information. Each tax software comes with its own administrative demands, which many find confusing to understand and simultaneously high-stakes. This leads to added time and expenses later on, when your case must be repaired and re-submitted. Every party’s finances are unique, so working closely with CPA from the start will ensure that your financial nuances are accurately intuited, analyzed, and filed.

can you get me a large TAX refund?

Everyone in search of a new CPA wants to know, “How much of a refund can you get me?” In truth, a CPA must thoroughly assess a client’s financial data before predicting whether they are eligible for a refund, and only then can they calculate a legal, rightfully owed amount.

Any accountant or CPA that guarantees a refund before reviewing your finances is making a false, unethical promise. The good news is, if Alicia takes you on as a client, you can rest assured that she will absolutely get you the maximum refund you are legally entitled to.