Tax Planning and Your CPA

Want Smooth Sailing for Your Tax Planning? Get Your CPA On Board.

Taxes, tax planning, estimated tax payments, your CPA. Feeling nauseous yet? Need a brown paper bag?

It doesn’t have to be this way. Like most people, you are not wired to deal with this tax stuff. You are not supposed to be great at tax planning! You are busy doing other stuff.

You want to spend less time on this stuff and more financial independence? You want more control of your financial life? You need to know what to expect from your accountant and how to work with him/her for your tax planning. Once you find the right person, a big load will be off your shoulders and you will feel great!

Here are 6 things you should ask and expect from your accountant:

1) You want a CPA who will be proactive with you, especially if you’re a business owner. They should call or email you every 3 months and check in with you about your tax planning. Yeah, you heard that right. I’m talking about them actively serving YOU! They really need to know how you are doing in your business. The right accountants can brainstorm with you about building real value in your business. Ask them what their process is to stay in touch with you.

2) How do they price themselves? Hourly? Flat fee? Do they actually prepare the tax return or do they farm it out to a junior accountant in the firm and then just sign the final return? Either way could be fine for you. You just need to be clear about who is actually doing the work.

3) You need to make sure your CPA is a team player and can work well with other advisors like atto
eys, financial advisors, etc. You need to feel like you are special to them — that they really care about your financial well being and are willing to go beyond the call of duty. Let them know that they need to work very well and communicate with your bookkeeper for your tax planning. Everyone needs to be on the same page.

4) Observe them when they answer your questions. Do they look you in the eyes? Are they smiling? Do you like what they do? Are they positive and easy to work with?

5) Ask them if they specialize in working with a certain type of client, like entrepreneurs, retirees, creatives, etc.

6) Tell them that you want them to be creative in coming up with ideas for your tax planning and saving you money. I am not suggesting you hire an aggressive accountant but a good CPA should call you and strategize.