My Tax Person Doesn’t Understand My Business.
Countless business owners have told me that they pay their tax person a lot of money every year, only to feel like their tax person doesn’t work for them, but instead is a surrogate for the IRS. Often times this happens because tax people, having the best of intentions, always err on the side of liability, self protection, and faster/easier filing instead of on the side of getting you the best legal deal on your taxes. This is where I suggest you take a proactive approach in your accounting. Here’s a couple of tips that may help you.
Tax Planning vs. Tax Filing: Ask your CPA about “tax planning” services. This is much different then filing your taxes for you. You need a strategy to put into place that will maximize deductions and credits on your taxes. If your CPA doesn’t offer this, research other groups that do.
Audit Before Tax Time: Evaluate before the end of the year what you can do to maximize your savings within that tax year and do those things.
Two Heads are Better Than One: Get your CFO involved in the discussion, bounce ideas off of them and let them advise and guide you in the best options for tax planning.
Communicate: When your CFO and Tax person are asking you for info, get it to them quickly! I know that it’s below your pay grade and you hired other people to do that stuff for a reason, but with out the correct intel, these people you hired can’t help you succeed on your taxes. In other words, “Help them, help you.”
Someone in Your Corner: Hire a CFO/Fractional CFO who has the knowledge to challenge the tax person and make sure your company is getting every tax break you have access to and deserve.
If you didn’t notice there is one major theme here; hire good people!
Michael Green Virtual CFO can be that good fractional CFO for you. Book a free consultation and we will see if we are a good fit for you.
