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The Best Ways for CPAs and Tax Specialists to Offer Investment Advice

Offering clients investment advice is inherently challenging and somewhat risky. Though financial planners and investment advisors are expected to provide such guidance, investing is outside of the niche of CPAs and tax professionals.

If you work in either of these professions and your clients seek investment advice, consider the suggestions detailed below.

Recognize Clients’ Need for Investing Guidance

Acknowledge the fact that you are not an investing guru and relinquish all legal liability for potential losses. Make it clear that your advice might lead to significant losses before making a single comment about a prospective investment.

Be General Rather Than Specific

It is a mistake to invest your limited time at work delving into the subtleties of prospective investments on behalf of your clients. Instead of providing highly specific advice pertaining to the nuances of individual stocks, mutual funds, ETFs, and other securities, speak in general terms.

Document all Client Interactions

If your client asks you to review an investment, document every piece of correspondence and information that changes hands and is discussed, be it verbally, in writing, or through email. All questions you pose to your clients pertaining to investments should be made in writing in order to provide you and your firm with the necessary legal protection. Documenting the exchange of information pertaining to client investments ensures an ensuing IRS audit will not conclude you or your firm have legal liability for the client’s legal violations such as the use of an impermissible tax shelter.

Refer to the Engagement Letter

CPAs and tax professionals often transmit engagement letters at the outset of providing services to a client. These letters are provided for the purposes of providing services in compliance with tax law. The language of the letter should state-specific services such as investment planning do not fall within the scope of the services rendered.

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9 Ways to Improve Your Cash Management Systems

Auto Debit Rule: New Deadline is September 30 | Dialabank

The COVID-19 pandemic has highlighted the importance of cash management and its potential for improvement. Companies are more careful with cash, but managing cash traditionally gets hard when everyone is working virtually. Its importance shun the light on how much is energy is required for cash management; the processing time was long and unpredictable. Cash and paper check payments have declined 16% year-over-year to 45% B2B payments, with Automated Clearing House payments rising 10 trillion for the first time.

Why do so many businesses still use paper checks? - Clover Blog

More companies have started using payment automation due to the COVID-19 pandemic, this increased the vendors of Nvoicepay by 26% since the start of the pandemic.

Some companies still have not yet changed their cash management system from paper checks, maybe because they do not know a better way, or are concerned about the cost of changing.

There is a better way.

When you stop to consider the full impact of payment automation on cash management, it becomes obvious how much better the future could be:
1. Reduces process cost
2. Card rebates
3. Less time fixing errors
4. Fewer hiccups
5. Less potential for fraud
6. Reduce ACH fraud cost
7. Less time handling inquires
8. Create Visibility
9. More flexibility

The COVID-19 pandemic has only highlighted the deficit in cash management systems. Automated payment allows for time management, flexibility, visibility, and control, which are important for cash management.

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The Rise of Accounting Automation

Automation is a new age phenomenon that is vastly becoming the norm. Technological developments in artificial intelligence (AI), machine learning (ML), and Big Data provide a host of opportunities to streamline outdated processes and automate labor-intensive tasks.

Automation is often portrayed as a negative force that will displace jobs and threaten the culture of an organisation

One huge benefit of AI that many firms are starting to recognize is that AI has the ability to accelerate mundane tasks as a queue to upskill their people and push employees to take on new challenges. A recent study by ACCA revealed that more than half of C-Suite executives believe automation will play a pivotal role in shaping the future of their accounting operations.

Automation provides a valuable resource to help accountants make better decisions and deliver the best possible services to their clients.

With the integration of AI, any organization must remain vigilant to the risk of online fraud attempts and set up the necessary protocols to safeguard your business against cybercrime.

Weigh the pros and cons for your business..

Will you incorporate Artificial Intelligence (AI)?


Accounting Trends 2021

With the world fastly adapting to virtual life due to the pandemic, businesses are finding ways of being more and more efficient.

How have you adapted ?

Have you incorporated anything new into your business?


Many businesses have realized that data analytics helps to identify operational inefficiencies and manage risks better.

Have you considered investing this year in data analytics and help your business boost with data-backed decision-making capabilities?

Date Integration with all the other business management applications is the most important factor technology has significantly contributed to the accounting process. With just the use of a mobile device, you can quickly retrieve financial reports, manage invoices, pay your vendor bills, and still track them in your accounting books.

Will your business adapt with the trends?