Tax Season is with us and will continue until April 15 2018. You may be a well-established business owner, a start-up entrepreneur, an independent contractor, or someone who prefers to rely on expert advice when you prepare your tax return. Whichever best describes you, here are four questions you should ask your accountant.

1. How can I best prepare for tax season?

The short answer is for you to have all of your paperwork in place and accurate. You then need to think about how you want to use rules and regulations (both state and federal) to minimize your tax liability while honestly claiming all the deductions you are entitled to.

To answer your question properly, though, your accountant needs to understand your line of business, the size of your organization, how long you have been operating, and so on. When your accountant knows those things she will be able to give you detailed and clear advice that relates directly to you and your circumstances.

There are many tax credits you may be able to claim, and many deductions you can take. These depend on your individual circumstances, profitability, your future plans, etc.

Tax laws change. You want your accountant to stay up to date on these changes and advise you on how those changes may affect your tax liability. That way you can use them to your advantage.

2. How should I communicate with my accountant?

This is an important question, even though it seems like a simple one. It always pays to meet your accountant in person so you can learn enough about each other, and how you can make the best use of their expertise and services. You will then agree how to stay in contact. Some clients want ongoing business advice and support, while some only need occasional advice on a specific topic or project.

If you want your accountant to handle your bookkeeping, and to act as your part-time chief financial officer, and to establish accounting standards and procedures for you, then you will communicate very differently from a client who only needs occasional advice over the telephone, for example.

3. What, in general, should we communicate with each other about?

This is a two-way question. You should phone, email or visit with your accountant about anything which is important to you, as soon as it becomes important. Your accountant should communicate with you on an agreed and regular basis to make sure all is as it should be – your bookkeeping systems and procedures, monthly or quarterly accounts, tax prep, etc.

Your accountant should also keep you informed about changes in the rules and regs that will affect you. The sooner you know about a change, the more successfully you will be able to make use of it at tax time.

4. What, in particular, should we communicate with each other about?

This follows on from Question #3. The sooner you take advantage of new tax law opportunities the better. You may, because of accelerated write-off, for example, decide to buy or lease new equipment now, rather than waiting until the year has turned. As long as you install needed equipment and put it into service, it becomes eligible for tax treatment in the current year. You may have questions about issuing W-2s or 1099s. Your accountant will pay special attention to any accidental misstep that could increase your chance of an audit. Each business has particular circumstances that determine what you will communicate about.

Final Comment

These four questions only scratch the surface, but they should help you to focus on the best way to begin and maintain your relationship with your accountant. The best accountants are supportive as well as accurate. The more your accountant knows about your business and your future plans, the more valuable she can be, both now and into the future. Our goal is to support and advise you, so you maximize your business’s profitability. If you have specific questions, or if you would like to discuss your business’s plans, please just click this button to contact us.