INVESTOR RESOURCES
TAXES
Accounting for Your Business
HOW TO FIND AND PICK THE RIGHT CPA.
by Joel Jensen, Tax Sentry C ertified Public Accountants (CPAs) are often trusted because of their accreditation, not because of what they can do. This sounds harsh but is simply the truth. Taxes for a business are not equivalent to personal taxes. Here are insider tips from a CPA on what to look for in a CPA: KNOWLEDGE ABOUT YOUR AREA OF BUSINESS A lot of CPAs are general practitioners when it comes to tax. They tend to know a little about a lot. Most business owners should rely on a CPA who processes multiple returns for the area of business they operate in. You wouldn’t go to a general practitioner for a heart attack. You would go to a specialist. It’s the same with your taxes. ACCESSIBILITY Your business will be operating 12 months out of the year. You should have an accountant that does the same and is not just seasonal. The more tax planning that is done throughout the year, the better result there will be come tax time. DROP THE FRIENDS AND FAMILY Having a friend or cousin or a cousin’s cousin do your taxes is common. Is it smart? Maybe or maybe not. A good CPA will always look out for you from a financial perspective first opposed to the
personal relationship. This is shocking but is beneficial.
OFFERS TAX AND AUDIT Planning for your taxes and plan- ning for an audit should go hand in hand. Most business owners fear the IRS, and rightfully so. The fear usually stems from not knowing what can trigger an audit. You want to use a CPA who will at least have a defense for an audit in the back of their head while doing taxes. This is not to say you will be audited but sometimes with taxes it is not bad to plan for the worse. A lot of clients we deal with grow accustomed to only seeing a CPA come tax time. This is less than ideal. Once April hits, a CPAs creativity is almost depleted. Make sure you get a CPA that will offer tax planning and strategy opposed to only tax prepara- tion. Questions such as “Why do I owe so much?” or “What could I have done?” are already too late for most accountants. The questions should revolve around what is projected to happen or what is happening. An ounce of prevention is worth a pound of cure. If your business is just starting, trending upwards, or has plateaued a CPA will be a vital part of your team. Taxes are one of the largest expenses a business will ever have. It is pivotal to plan, prepare, and prioritize that expense. • OFFERS TAX PLANNING
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