Customer whole big picture view is not an easy task. We as CPA’s spend a ton of time trying to see what was done, by whom and when to put together facts for the whole picture. Sometimes we are missing relevant information that is held onto by the “bookkeeper” or even the owner who prepares their own accounting.
So asking the right questions and knowing when to consult the CPA is important information. Here are a few tips on situations that should trigger an alarm:
- Increase in Net Income by 10-15% (comparison Profit and Loss Statement will easily show)
- Large asset (equipment, etc.) purchases with cash
- Purchases Agreements or Lease Agreements for new equipment
- New Vendor relationships that would trigger a 1099’s
- New Services or Products offered
- New locations
All of the above situations could trigger major tax implications. Sometimes the CPA is notified after these situations have already happened and we have to play fireman/firewoman and pour water on all the fires. It’s hard to do any tax planning without the proper information and even worse reduce your CPA to only a tax preparer.
When you leave your CPA in a situation that is the last to know then you leave yourself open to some tax ramifications you may not know or even understand. Your CPA is your defense and should be a team member just like your bookkeeper.
If you are the bookkeeper, be proactive. Help your customer be proactive in their relationship with their CPA. Your value just went up because you showed yourself as caring about not just the transactions but also about the outcomes.
In our office we offer both accounting and tax services for our small business customers. Why? Because we understand that there is big value added to the customer when we can handle and understand what is actually happening regularly in their business. It’s all under one roof.
If you are a current customer, ask us about how we can help you be more proactive in your business. If you are not, give us a call. We can put together a plan that will have it all handled from beginning to end of the year. No surprises!