As with all good marriages and lasting friendships, the relationship you have with your CPA is a two-way street and its success is based upon regular communication. To maximize the benefits of your CPA relationship, make your CPA an integral part of your management team. Don’t let tax time be the only time you see them. Reach out to them before major decisions for input on structuring transactions to save on taxes and enhance profitability.
So how can you help your CPA help you?
- Record transactions timely, accurately, and consistently.
- Keep good records and supporting documents.
- Reconcile bank statements, credit cards, loan balances monthly. Resolve stale outstanding items regularly.
- Use an “unknown” account for items you don’t know how to record and periodically review with your CPA.
- Promptly forward notices from IRS or other authorities.
- Close the books and prevent additional changes after sending financials to your CPA for tax return preparation.
So use your CPA for more than tax returns and financial statements, and make us an integral part of your management team. Follow these pieces of advice, and you’ll be setting yourself and your business up for increased success.