All Forum Posts by: Brian Dela Cruz

ChatGPT is great, and it is a very helpful tool for boosting efficiency and effectiveness.

However, one of the things I don't like about ChatGPT, is that once it has provided an answer, there is a finality to it.

So, if and when it makes mistakes; then, it doesn't know or attempt to fix it. You personally have to know it was a mistake, and call it out or fix the mistake yourself.

If not you, then who? If you're not an expert with a retired CPA license, a Master's in taxation and 30 years of experience, then who is? If not now, then when? If you're not an expert by now, then when would you be? What would it take for you to become an expert?

@Charles Perkins

Also, as a CPA, while I can’t claim to be infallible, I’ve made very few mistakes over the years. I always double-check my work—and ensure that those working for me are thoroughly trained to do the same—especially in areas where high risks or significant consequences are at stake, such as in matters of high materiality. I almost always invest extra time verifying these critical areas, which is key to maintaining the high standards our clients expect. That said, delivering this level of quality requires a significant investment of time and attention on every engagement, which is why I simply can’t charge low rates.

@Charles Perkins

I appreciate your perspective. For me, taking the CPA exam was a transformative experience—it taught me more than the 30+ credit hours I spent in college level courses on accounting, tax, audit, and business law. The exam not only deepened my understanding of the intricate details but also helped me see the big picture of how our financial system works. It sharpened my tax research skills, which have proven critical when I began handling accounting and tax matters for businesses and real estate investors.

Moreover, earning my CPA was just one milestone in my ongoing learning journey. I went on to acquire several other credentials both before and after becoming a CPA, driven by my desire to master every facet of the profession. And while my professional growth is important to me, I also balance the demands of a busy family life with my wife and four young kids.

Looking forward to more insightful discussions like this.

@Natalie Kolodij

In my 20+ years of experience, I have never met an uncredentialed tax preparer who could 'run circles around' CPAs and EAs when it comes to tax laws and compliance. If such tax law prodigies exist, I’d love to meet them. From my experience, those who are truly skilled in tax typically learned from a CPA or another highly credentialed professional, if they lack formal education and credentialing in tax. But that raises an interesting question—how would you even go about finding a good uncredentialed expert?

Also, you have to wonder—if they’re so skilled, why didn’t they at least pursue an EA or CPA credential? Did they believe there was nothing more to learn? Or were they simply not motivated or committed enough to take that step?

I hear you! There’s definitely a place for both, and I don’t blame anyone for wanting to save a few hundred bucks if all they have is a W-2 with no plans to invest or start a business.

But let’s be real—life isn’t that simple. The moment you buy an investment property, start a side hustle, or even experience a major life event (marriage, kids, inheritance, etc.), taxes get more complicated. That’s when working with a CPA isn’t just about "getting it right"—it’s about proactively reducing your tax liability and setting yourself up for long-term financial success.

TurboTax and basic tax preparers like H&R Block handle what's in front of them. A CPA sees what’s ahead. So, when tax season rolls around, do you want someone who just inputs numbers, or someone who strategizes to maximize your wealth?

What’s your take? Have you ever had a tax situation where you realized you needed more than just software or a basic preparer?

Data entry clerks - likely to miss deductions, overlook credits, miss carryforwards, make mistakes on tax law limitations

CPA - get it right, reduces errors, and helps you in building your wealth through tax savings

What are your thoughts? What factors did you consider for your decision? Aren't all tax preparers the same?

@Ngozi Iwunze

You could change your strategy, if you were open to that. 

You could buy a home for a primary residence, rehab it, and then sell it after living in it for 2 years as your primary residence. If you live in the property for at least 2 out of the last 5 years, you could qualify for the Section 121 Exclusion, which allows you to exclude up to $250,000 ($500,000 for married couples) in capital gains from taxes. If I were you, I would start this way, if you are new to real estate investing. It is pretty low risk from my viewpoint.

Then, after you've sold the first property, you could buy another home that needs to be fixed up, live in it as your primary residence, rehab it, and sell it again after living in it for 2 years as your primary residence out of the last 5 years. You could then again qualify for the Section 121 Exclusion, which allows you to exclude up to $250,000 ($500,000 for married couples) in capital gains from taxes.

I think that people can get rich in this way without any tax burden. Work with a tax professional (preferably a CPA that does tax planning and not someone at H&R Block or TurboTax) to ensure you qualify. As with anything related to income tax, the money is in the details of the tax law.

@Alex Schumer

Let me share with you from an insider's perspective. In the world of accounting, different levels of education, expertise, and responsibilities define a professional’s title and role. But let’s be real—people use these terms interchangeably all the time, often without realizing the distinctions. So, let’s break it down and clarify what sets bookkeepers, accountants, and CPAs (Certified Public Accountants) apart in terms of what they do, what credentials they need, and what they can and can’t do. Then, you'll be better able to decide based on your needs.

1. Bookkeepers
Role:
Bookkeepers are responsible for keeping track of the day-to-day financial transactions of a business.
Responsibilities:
• Recording income and expenses (sales, payroll, bills, etc.)
• Managing accounts payable and receivable
• Reconciling bank accounts
• Generating basic financial reports (e.g., Profit & Loss statement, Balance Sheet)
Credentials:
No formal certification is required and may or may not have a high school diploma, but some bookkeepers pursue:
• QuickBooks ProAdvisor Certification
• Certified Bookkeeper (CB) from the American Institute of Professional Bookkeepers (AIPB)
• Certified Public Bookkeeper (CPB)

Caveats:
Bookkeepers do not handle and probably should not handle tax planning, financial analysis, or compliance work. Their job is to record transactions, not interpret them.

2. Accountants
Role:
Accountants take financial data and make sense of it, ensuring compliance with regulations and helping business owners understand their numbers. (Not all accountants are CPA's, but all CPA's are accountants).
Responsibilities:
• Preparing financial statements (Balance Sheet, Income Statement, etc.)
• Adjusting bookkeeping records to align with Generally Accepted Accounting Principles (GAAP)
• Analyzing financial performance and advising on business decisions
• Preparing and filing tax returns (if properly trained)
Credentials:
• Typically hold a degree in accounting or finance
• Some may have certifications like Certified Management Accountant (CMA) or Enrolled Agent (EA)

Caveats:
While accountants can generate financial reports and file tax returns, they cannot represent clients before the IRS. Anyone who wants to optimize their career in accounting generally prioritizes getting the CPA license.

3. CPAs (Certified Public Accountants)
Role:
CPAs are accountants who have gone through rigorous licensing exams and meet state requirements.
Responsibilities:
• Everything accountants do, plus:
• Preparing audited and reviewed financial statements
• Conducting forensic accounting and fraud investigations
• Representing clients before the IRS in audits and disputes
• Developing advanced tax strategies
• Advising businesses on mergers, acquisitions, and financial structuring
Credentials:
To become a CPA, one must:
• Pass the Uniform CPA Exam in Auditing and Attestation, Financial Accounting and Reporting, Taxation and Regulation, and a specialized area, such as Tax Compliance and Planning or Information Systems and Controls.
• Meet state-specific experience requirements, at least a bachelor's degree with enough accounting credits, such as 30, to know a lot about accounting
• Complete continuing education (CPE) annually to maintain their license

Caveats:
While CPAs have broad financial training and licensing, many of them choose to specialize in a niche such as auditing, advisory services, accounting and tax, or corporate finance for work.

A lot of people say the BAR exam is easier than the CPA exam. Statistically, the CPA exam has had a pass rate of 45-55% and the BAR exam has had a pass rate of 40-75%.

About Enrolled Agents (EAs):
An Enrolled Agent (EA) is a tax expert licensed by the IRS. Unlike CPAs, EAs focus on tax matters and can represent clients before the IRS in audits, collections, and appeals. If only tax expertise is what you need, an EA or a CPA with a tax specialty is your best bet. 

I think that if you are serious about doing your accounting and taxes efficiently and effectively for your business, your best bet I would say is a CPA that specializes in accounting and taxes for Real Estate Investors. Hope this is helpful!

@Andrew Drasch As an entrepreneurial CPA, I believe that mastering your craft is essential, and that investing money strategically leads to greater financial success. Choosing a solution like that means missing out on significant opportunities to free up your time for what you do best while also foregoing the expertise of a tax professional who could provide substantial benefits—potentially saving you thousands of dollars. Every tax season, I see people unintentionally overpaying the IRS. I often hear, "Oh, I didn’t know" or "Oh, I forgot about that," followed by reluctance to go through the effort of gathering the necessary documentation. And there's more...