As the year comes to a close, it’s probably time for you to talk to your Certified Public Accountant, especially if it’s been awhile since you two have sat down and discussed your business. You may think you can put off talking to your CPA until next tax season. But it’s better to talk to them earlier, rather than later.
In fact, CPA Sheila Hansen advises business owners to seek out their CPA’s advice whenever they enter into a business transaction. “Whether you’re signing a new purchase order or buying out your partner, the best time to talk with your CPA is before that transaction takes place. There is only so much a CPA can do after the fact. Even if you are unsure whether there are accounting or tax implications on the transaction, ask first! It’s never fun to find out later that you should have structured the transaction differently.”
Of course, many small business owners are most concerned with taxes. One thing you’ll want to discuss with your CPA is your tax strategy. Beyond Balance Books recommends that a “review of your Year to Date totals will assist your CPA or tax professional in estimating the potential business and individual taxes owed for the year. In addition, they can provide guidance on the most effective strategy to reduce your tax liability.” They also advise that “in some cases, (your CPA) may recommend making estimated tax payments to lower the overall bill come tax time. Keep in mind that the most effective tax strategy may change from year to year, so you may want to consider scheduling more meetings to talk tax strategy throughout the year.”
With 2020 just a few weeks away, this is a great time to think about your business plan for the next 12 months (if you haven’t already!) And you should definitely discuss this with your CPA. As the folks at Beyond Balance Books say, “(CPA’s) can be a great resource for discussing the future of your business. You may find after consulting with them that there are challenges and obstacles you hadn’t thought of.”
Of course, having a good bookkeeper on your team will help your CPA focus on your long-term objectives and tax strategies. Don’t make the mistake of trying to do your books yourself. Versatel Solutions can take the bookkeeping duties off your plate, so you can focus on making your business a success.