Professional Development Small Business Tax Policy

Fire Your CPA if They Aren’t Doing These 3 Things

When you see the word CPA some of these words might come to mind:

  • Taxes
  • April 15th
  • Pocket protector
  • Unhealthy amounts of coffee

But when it comes to your CPA the following 3 things should automatically come to mind – otherwise it’s time to find a new CPA. Here are the top services that set a good CPA apart from an amazing CPA.

Tax Planning

It’s one thing to have a CPA that prepares your tax return but it’s something entirely different to have a CPA plan for your tax return. By consulting with a CPA before making major financial decisions you can save thousands of dollars in tax.

A good CPA will tell you the tax implications of what you did after the fact but an amazing CPA will tell you how to plan your decision to save the most in tax. Avoid owing the IRS thousands of dollars and having interest and penalties associated with your poor planning.

Estate/Secession Planning

If your main asset is your business and you have no estate or secession plan in place then you’re setting yourself up for huge problems down the road. Having an estate plan can save you thousands in taxes and ensure your family is taken care of long after you’ve left this earth.

Amazing CPAs not only prepare the proper documentation and tax forms to get an estate in place, they also help you structure long-term goals for yourself and your family.

Take for example a family business: let’s say you own a pizzeria with your son and the business is a substantial portion of your net worth. If you were to pass away unexpectedly who will run the business? You might assume your son will take ownership but not having a proper will in place could open up your son’s business to other family members who want a piece of the pie (no pun intended).

Good CPAs will pick up the pieces after the fact but amazing CPAs will ensure those pieces never fall apart in the first place.

Asset Protection

Anyone who owns a business knows the risk they face when they run any kind of operation. Whether it’s a lawsuit from an ex-employee or a customer that was hurt with your product or service – it is important to protect your assets.

Ever heard the expression CYA? It stands for cover your assets… and it’s what every business owner should keep on top of their mind.

CPAs are great with structuring businesses to not only get the best tax advantage but also to get the best legal protection. With a combination of proper insurance coverage and entity structure, even small business owners can rest easy knowing their assets are safe.

Planning Is Crucial

Have you noticed a trend? If your CPA isn’t helping you plan for the future then you’ll be stuck in the past. It’s time to leave that CPA behind and start being proactive in your approach to your business.

Anyone can file a tax return but you want a CPA that is going to be your trusted advisor. Have a question about college savings? Your CPA has you covered. Wondering if your family is protected if anything were to happen to you? Your CPA has you covered. Want to talk sports in March? Your CPA will get back to you in April.

Photo Copyright: <a href=''>ruangwit / 123RF Stock Photo

Jeremias Ramos is a CPA working at a nationally recognized full-service accounting, tax, and consulting firm with offices conveniently located throughout the Northeast. Jeremias specializes in tax and business consulting with focus areas in real estate, professional service providers, medical practitioners, and eCommerce businesses.

2 comments on “Fire Your CPA if They Aren’t Doing These 3 Things

  1. I completely agree, Accountants must take a proactive approach with their Clients finamces and tax planning is crucial for business Clients

  2. The new tax laws are the best conversation-starters for accountants that have previously only been doing compliance work for their business owner clients. I speak with business owners every day that tell me they’re willing to pay more to get more. The good news is: they’re wanting to be able to get it from their accountant. Don’t take my word for it. Talk to them and let them tell you themselves.

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