Common Accounting Questions

Looking for answers? Below you will find a few commonly asked questions and answers.  You should note that this page is meant to provide general information.  It is no substitute for the financial advice of a qualified professional who can review your situation in detail.

With Kelly, Sparber, White & Associates, LLC, you can call with confidence.  Don’t be intimidated.  Our friendly staff and focus on customer service always make you glad you called.  Contact Kelly, Sparber, White & Associates, LLC today for answers to questions that interest you the most – how to improve your tax situation, begin sound financial services, and meet your business goals.

Can I keep my own books and prepare my own taxes?

Everyone should ask this question of themselves.  In part it depends as much on your patience and ability to deal with complex regulations and frustrating forms as anything else.  When you engage the services of a professional CPA firm, you relieve yourself of a time-consuming burden, gain peace of mind knowing your taxes have been prepared properly, and enjoy the benefits of valid deductions only an expert review of your situation may uncover.

Can I write off my car as a business expense?

Business-use vehicle deductions can be calculated using the standard mileage method or an actual expense method.  Under the current mileage method, the IRS allows $0.585 per mile, starting on 7/1/08.  Alternatively, your actual expense in using the vehicle as well as its depreciation must be determined.  

Are there tax breaks associated with incorporating a new business?

Incorporating your business can take a  substantial amount of effort and costs.  It includes additional state fees, legal fees, and accounting expenses.  Because many of the tax advantages associated with incorporation benefit established and profitable businesses, you should have a professional carefully examine your business to make sure incorporating is right for you.

What is a legitimate tax deductible expense?

Well, if it is a traffic ticket, it is not deductible.  If it is a plasma TV, it may be deductible if, according to the IRS, it is an “ordinary, necessary, and reasonable” expense.  So if your business involves training presentations in which the large screen will be of use, it may well fit such criteria.  If it is installed in your living room, it most likely will not. 

Determining deductibility is more than a matter of reviewing a list of items; it requires professional judgment and experience.

How can we arrange our finances to qualify for the most college aid?

Your family’s financial situation is unique.  There is no “one-size-fits-all” answer, as what we might recommend for one family might be disadvantageous to another.  You need to investigate scholarships, student loans, and other financial aid options, as well as take advantage of some professional estate planning services.  These days, attending college is nearly as great a financial burden as owning a home, and the task of paying for it deserves careful attention.

Service Area

Kelly, Sparber, White & Associates, LLC, your local CPA firm specializing in business accounting, income tax preparation, tax planning, tax advice, retirement planning, payroll service, and more in the following areas:  Latrobe, Blairsville, Derry, Greensburg, Irwin, Jeannette, Ligonier, Mt. Pleasant, New Alexandria, North Huntingdon, and throughout Westmoreland County.

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