Differences Between Levi's Books and Taxes and Other Accountants

Accountants are great people. They are usually a little dull but they are great people. Our intent in providing this information is not to make fun of or malign any accountant. It is simply to point out the differences between most accountants and Levi’s Books and Taxes.

The reason this is necessary is that Levi’s Books and Taxes thinks differently than most accounting firms. We have over twenty years of business experience in businesses other than accounting. That experience sets us apart from the competition.

If we aren’t your accountants, we suspect your accountants don’t want you to know what is in this special report. Please do us a favor and don’t go yell at them. After all, they are accountants and that is their specialty. You shouldn’t blame them if they don’t have the experience we have. After all, they aren’t us!

One other thing you should remember too: This report is designed to provide accurate and authoritative information regarding the subject matter covered; however, neither its publisher nor contributors assume any responsibilities for errors, inaccuracies, omissions, or advice. If accounting, legal or other professional advice or expert assistance is required, the service of a competent professional person of your choice should be sought. Each individual reader is solely and wholly responsible for any decisions made or actions taken that may be motivated by the material herein. Also, any slights against individuals, companies or organizations are unintentional. This notice is based on publishing industry guidelines jointly adopted by the publishing industry and the American Bar Association. Questions should be directed in writing to Levi’s Books and Taxes, 21 Pine Ridge Road, Sandia Park, NM  87047.

Copyright 2006 by Levi’s Books and Taxes

Al rights reserved. No part of this report may be reproduced, transmitted by any means, electronic, mechanical, photocopy, and recording or otherwise without written permission from the author.

Ten Things Other Accountants
May Not Want You to Know

1. Other accountants may use puzzling terminology to confuse you and keep you from asking important questions. Doctors and attorneys use similar techniques to make you feel stupid.

Levi’s Books and Taxes uses simple language and clearly answers any questions you have.

2. Other accountants may not maximize your deductions because the IRS trained them to collect the most possible revenue for the government. Some accountants may have even worked for the IRS in the past. If not, the IRS trained them. This training was good training but, face it, the IRS is in business of collecting money for the United States Government. The IRS does not teach how to maximize deductions. The IRS teaches how to collect taxes.

The IRS did not train Levi’s Books and Taxes. We are very familiar with the IRS tax code but we have more than twenty years of practical business experience as our training.

3. Other accountants may not have extensive business experience so their business recommendations may not be best for your business. Face it, they are accountants, and that’s all they have even been. They may have a secretary or another accountant in the office with them but they don’t really have a staff like you do. They will make lots of recommendations based on their business experience but, unless you’re also an accountant, they probably won’t be best for you.

Levi’s Books and Taxes has a variety of business clients. We also own other businesses so our recommendations are full of practical, business-savvy advice.

4. Other accountants may have never managed a true accrual based business so their knowledge of inventory based product businesses is very limited. They understand accrual based accounting theories but accountants run their business on a cash basis. That means they don’t handle inventory issues on a regular basis and they may not fully comprehend the management issues you face every day. As a result, their tax advice won’t make sense to you from a business standpoint and you’ll have the tough decision of trying to follow their advice or doing what you think is best for your business. You’ll do both and try to remember how you did it when they ask questions. You’ll hate going to see you accountant because you know he or she will catch you not following the advice and lecture you like your mother use to do.

Levi’s Books and Taxes is very familiar with accrual based business and the inventory issues you face. We won’t make you choose between our advice and what is best for you because our advice will be what is best for you. Also, we don’t lecture anyone like mom use to do because we hated that too!!

5. Other accountants, especially CPAs, may be more concerned about protecting their certification than maximizing your deductions so they will not be as aggressive as possible on your behalf – even when it is perfectly legal for them to do so. Certified Public Accountants have to close their doors if they lose their license. As a result, they will skip some legal deductions because they don’t want your return to look too “good” from a tax standpoint.

Levi’s Books and Taxes staff have more experience than many CPAs. However, they don’t have CPA licenses. Our goal is to legally maximize your deductions – especially if that is your goal. (By the way, we have a CPA firm who will work with us if you need services that can only be provided by a CPA.)

6. Other accountants may insist upon documentation for every deduction you take in your business even when the IRS allows for reasonable estimates for some deductions that do not require documentation. They are just not comfortable with a deduction unless there is documentation for it. They will spend a lot of time (your money) reviewing that documentation because they don’t trust you to do it correctly. Then, when they find something missing or inconsistent, they will ask you to spend a lot of your time finding it.

Levi’s Books and Taxes trusts you to provide us with accurate records. We’ll put your records together for you if you ask us to do so but if you decide to do it yourself, we will accept your records as fact.

7. Other accountants may not allow you to be creative with the wages you pay to your underage children even though it is perfectly legal for you to do so. That unwillingness will cost you about $600 per child in extra taxes.

Levi’s Books and Taxes encourages our clients to use their children in their business. This special part of the tax code allows you to save tax dollars while training your children how to manage money. We are sure you can see the benefits for you and your children both now and in the future.

8. According to a recent conference of the AICPA, the organization that regulates and registers CPAs, over 80% of CPAs do not understand the basics of real estate tax and accounting. The reason is not that real estate tax and accounting is difficult. The reason is that
80% of the CPAs do not have the experiences necessary to understand those basics.

Levi’s Books and Taxes serves numerous clients who invest in real estate. We invest in real estate too, so we understand the basics of real estate tax and accounting. We understand the advanced stuff too!!

9. Other accountants may not recommend you re- categorize your business donations in a manner that makes them fully deductible even though it is perfectly legal for you to do so. They know that most people think deductions are deductions and they will not take the time to explain that your charitable donations may not reduce your tax bill.

Levi’s Books and Taxes understands that business donations produce good will and extra business for you. You can call them donations and they MIGHT reduce your tax bill. However, if you legally call them something else, they WILL ALWAYS reduce your tax bill.

10. Other accountants may not recommend entity structuring for you because they think your attorney should do this. This lack of knowledge and initiative costs you extra dollars in self-employment tax that are saved through skilled entity structuring. This is true even if your income is LESS THAN $100,000. They really don’t care how much you pay in taxes as long as they get paid for their service to you. Besides, they don’t think there is much need to have an entity structure unless you’re making more money than them.

Levi’s Books and Taxes has saved our clients thousands of dollars in taxes each year through using entity structures like Corporations and LLCs. We won’t give you legal advice on those entities. That IS your attorney’s responsibility. However, we will give you advice on how these entities can save your tax dollars.

OH – There is one more thing other accountants may not want you to know…

They may not ask you whether you want to consider reducing deductions so your taxable income is higher. In fact, that has never even crossed their minds because they just report what you give them.

Levi’s Books and Taxes understands that greater taxable income is sometimes desirable – especially for purposes of obtaining a mortgage or other financing. The IRS doesn’t require you to report all of your tax deductions and we’ll work with you to determine if it might be in your best interest to NOT report some of them.

Do you want to know more?  Contact us TODAY to schedule a free telephone consultation. Call 505-286-5176 or email us at matt@levistaxes.com

The owners of Levi’s Books and Taxes have prepared tax returns since 1979 but that isn’t the main reason you should use us for your tax return this year.

Levi’s Books and Taxes has prepared thousands of tax returns in the past but that isn’t the main reason you should use us for your tax return this year.

The main reason you should use us for your tax preparation this year is our business experience. We have participated in business ownership since 1983. Quite frankly, this experience puts us far ahead of other tax preparers, accountants and CPAs. They simply can’t match our multiple business experiences so they often miss deductions and cost you valuable dollars.

We can prepare your federal and state return no matter which state you live in.

We have expanded our capacity to serve you. Even with our expansion, we can only add a limited number of new clients this year so contact us today before all appointments are taken. Email us at matt@levistaxes.com or call 505-281-5176 to schedule your free appointment or telephone consultation.

Click here to download this information.

Enter your name and email address to get your Tax Information Worksheet