[Belle]

Hi All: I’m interviewing a personal accountant (CPA) for the first time. I’m an unlikely entrepreneur in that I dont really understand the mechanics of business but am starting to have a lot of financial success.

My spouse used to do my taxes and the spouse knows just the basics and is not a tax/finance person.

Here’s my main issue: Because I dont know beyond the basics of accounting, taxes, etc, I dont know what are powerful questions to even ask the CPA.

How can you ask questions about tax investments, etc that haven’t yet occurred to you..

MAIN QUESTION: What’s the most effective, productive ways that you have found to get the most value from your CPA?

More specific questions: Is it reasonable for people to expect their accountants to come to them with unconventional ideas? For example,

I’m starting to have a fair bit of social media success and I read an article the other day that said if you’re an influencer, you get tax benefits.

This never occurred to me. Is it reasonable to expect that a personal accountant would bring ideas like this to me?

I’m painting a few rooms in house because I need a rooms for social media content.

These rooms are offices. Is it reasonable to expect my accountant to come to me with ideas such as this?

Is it reasonable to expect that a CPA would come to you with investment ideas such as: “Now would be a good time to invest $50k in your business” or whatever.

Thanks, all.

[Karen]

I use a well-renowned CPA firm. I would not expect them to suggest tax strategies specific to a certain type of business, because they probably have clients with lots of different types of businesses and they can’t know the specifics of each one.

(For example, although I’m not a CPA, I would have not thought about an influencer needing to paint a room in their house.

It makes sense, but it wouldn’t have occurred to me before you said it.)

I also would not expect them to come up with investment ideas; in fact, some of the tax strategy ideas I’ve received from my CPA are great tax ideas, but I often have to take a step back and realize they are experts in tax strategy but not investment professionals.

[Rebecca]

It’s absolutely fair to ask a CPA about their approach for tax strategy for their clients. Tax planning and prep require strategy if you have anything complex going on.

On the more subjective side…I personally think it’s a great thing when the cpa asks you more questions than you ask them during a consult.

It’s a good indication they’re already looking for ideas about how they can advise.

[Andy]

Are you looking for *tax* strategy, or *business* strategy? The distinction is important.

Lots of people get caught up in avoiding taxes at the expense of running a (more) successful business, so make sure you know what you want and work with one or more people who can provide that to you.

Make sure your definition of success is what they’re moving you toward, rather than theirs.

[Tikvah]

Disclaimer: I own an accountant firm.
It’s important for business owners to understand tax preparation is very different than tax planning/strategy meetings.

Tax prep is strictly getting your taxes ready to file and you should have a separate meeting about tax strategy to maximize the results in my opinion.

This also should happen way before tax time so you can deploy the strategies before filing taxes your next cycle.

During a tax planning meeting questions like what tax strategies would you advise based on x,y&z situation.

What are some strategies entrepreneurs have used that I may not know about. How can I maximize my business deductions.

Retirement vehicle questions. Changes from an LLC to Scorp and when is a good time to do that if ever for your business model.

How to maximize your taxes if scaling your business are all appropriate questions we’ve fielded and advise on.

[Stacy]

Listen to Mark J Kohler on you tube for business structure and deductions ideas/questions.

[Jorel]

By and large, most CPAs act after the fact.
What you’re talking about is tax planning, not simply tax preparation.

Also, get a good bookkeeper.

Some CPAs keep the books. Most don’t.

[Matty]

To get the most value from your CPA, consider these strategies and “big questions”:

Strategies:
Set Clear Goals: Communicate your financial objectives clearly.
Regular Communication: Schedule frequent meetings to discuss updates and strategies.

Proactive Advice: Encourage your CPA to provide unconventional tax and investment strategies.

Big Questions:
How does the legal structure of my business affect my taxes?

What industry-specific tax regulations should I know about?

What records should I keep, and for how long?

How can I maximize my deductions?

What are the potential pitfalls of my current tax strategy?

Can you suggest unique tax-saving strategies?

How do you stay updated on new tax laws?

What is your approach to risk management in tax planning?

How can I improve cash flow management?

Are there any conflicts of interest with other clients?

[Sarah]

You need a bookkeeper and/or use Quicken to identify and account for your revenue and detailed expenses as a start.

There are different rules on what is deductible based on the type of business.

You can start off with a quick google search. For instance, I am a realtor, and I found a lot of resources for typical deductions, then I worked with my CPA to go through my expenses and say yes/no to if I could take them, and if I have to allocate them

(home office space and expenses; utilities, property taxes, etc) or if they are a direct write off at 100% (your paint for remodeling your office space, furniture for your office, home internet, etc).

[Author]

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