FAQS

The Answers You Need

Welcome to the Destination Accounting Firm Help Center. We have compiled some of the questions we get asked the most. We specialize in a variety of fields and have knowledge pertaining to many areas of accounting. Our team will do our best to answer all of your financial management questions and concerns. If you can’t find the answer you are looking for, please get in touch.

HOW LONG SHOULD I KEEP MY TAX RECORDS FOR?

Period of Limitations that apply to income tax returns

• Keep records for 3 years if situations (4), (5), and (6) below do not apply to you.

• Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a

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• Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.

WHAT ARE THE DIFFERENCES BETWEEN AN ACCOUNTANT, A CPA AND A BOOKKEEPER?

Bookkeepers, accountants and certified public accountants (CPAs) all work with businesses' financial data. Bookkeepers record when a company receives, pays or owes money. Accountants provide more in-depth analysis than bookkeepers. A CPA or certified public accountant is an accountant with a state license.

WHAT DO ACCOUNTANTS DO?

The primary duty of an accountant is to prepare financial records and ensure that they are correct. Some of the specific duties of an accountant include the following:

• Prepare tax returns.

• Make sure that the company’s financial statements comply with state and federal laws.

• Make recommendations to management on ways to decrease costs and increase income.

• Prepare reports to explain their findings to upper management.

• Meet with private clients to provide financial advice.

There are three different career possibilities within the field of accounting.

1. The first is a government accountant. In this role, you would ensure that all money spent and received by local, state or federal government agencies are lawfully used. You may also be involved with auditing individuals and businesses that are subject to taxation or government regulations.

2. Management accounts are responsible for preparing financial information for internal use at their company. Preparing budgets is a big part of their jobs. Some may also be involved with asset management, such as real estate, stocks and bonds.

3. Public accountants generally work with the individuals and corporations to help them manage their finances. As a public accountant, you may release balance sheets to potential investors or consult with a private client to help him or her make investments.