READER’S POLL: How Well Does Your CPA Serve Your Needs?
The Certified Public Accountant (CPA) might be one of the most underappreciated roles in the financial world. Far too many people view their CPA merely, as a tax filer. However, a great CPA does so much more than ensure you’ve paid your dues to the IRS. It’s unfortunate that so many people miss out on the many benefits a great CPA can afford them. In most cases, this is because they simply don’t know any better.
Of course, your CPA can accurately and skillfully file your end-of-year taxes. Beyond this, they can serve as an advisor on your board of directors, perform internal audits, and even create forward-thinking tax-mitigation strategies to help you build wealth. But not all CPAs are created equal. There are plenty who are perfectly happy to charge hourly, monthly, or annual fees just to do what the average Joe can do with QuickBooks or TurboTax. On the other hand, there are some truly brilliant CPAs in the financial industry. If you’re fortunate enough to work with one, then you understand what they really bring to the table. You might pay a little more for their services, but they’ll more than cover the difference with the money they’ll save on your tax bill. So, how well does your CPA serve your needs?
If you answered…
“I don’t have a CPA because I use accounting software.”
While there’s nothing inherently wrong with this approach, it may not be the best approach. Depending on the complexity of your financial picture, you might be better served by a real CPA. They can examine your P&L statements through a tax-sensitive lens and advise you in ways that many accounting software packages are unable to. Take some time to consider your unique circumstance and determine if accounting software is really the best option. You might be surprised at the amount of money you could be leaving on the table. To learn more about why a great CPA is a vital part of your advisory team, follow this link.
“Okay, I guess. We speak a couple of times per year to make sure my taxes are in order.”
We are happy to hear that you’re at least getting basic compliance and tax service from your CPA. However, if all you’re getting from your CPA is basic tax prep, you’re probably going to end up paying more than you really should to Uncle Sam. I like to compare it to driving down the road but only looking at your rearview mirror. You’ll know exactly where you’ve been, but you also stand a good chance of driving right into the tax dump truck that’s just ahead, too. From payroll processing to tax planning, there are a lot of services you’re missing out on if your CPA is only focused on filing. Click here to learn more about why a forward-thinking CPA is so important.
“My CPA treats me like I’m their only client. They have intimate knowledge of my business and have helped me accumulate wealth through tax deferral and mitigation strategies.”
This is fantastic news! We’re glad to hear that your needs are being met by your CPA, but here’s some food for thought. There are many things you can do within your business to gain added tax advantages. These range from renting your personal home to your business for meetings to hiring your spouse to work in your company. Ask your CPA about these and other potentially tax-advantageous moves you could make in your business. In the meantime, you can learn more about the tax advantages of employing your children by clicking this link.
Many business owners miss out on game-changing advice because they don’t have a true understanding of what their CPA can offer. Likewise, there are plenty who believe a financial planner is only for portfolio management. However, a great CFP® can coordinate your personal finances and your business finances to drive in synchrony toward your goals. Reach out to our team to learn more about how we could help!