7 Questions to Ask Your CPA

When running your business, you cover a lot of ground, from meeting with clients and managing employees to marketing your products and services. Making money keeps the doors open, but managing the financial side of your business might take a back seat to other responsibilities.

That’s where your certified public accountant (CPA) can become your trusted partner. While you remain focused on daily operations, your CPA can help you get the most out of your business while helping limit your tax liability.

But how can you feel confident that you’re getting the most from your CPA and business? Get the ball rolling by asking your CPA these seven key questions.

What Can a CPA Do for a Business?

If you only think about your CPA during tax season, you’re not taking full advantage of what a good CPA brings to the table and how your business could benefit. A CPA is far more than the person who completes and files your taxes. 

A CPA can offer crucial guidance in several important areas. They can help you with things like tax law, financial planning, and regulatory compliance, aiding your business in meeting its legal requirements as it grows.

7 Questions for Your CPA

Whether you already have or want to hire a CPA, asking questions and maintaining clear communication are essential. Here are seven of the top questions to ask:

1. Do I Have the Right Business Structure?

The structure you select for your business can have a significant impact. Setting up as a sole proprietorship, limited liability company, or S or C corporation can affect tax liabilities, legal requirements, and operational efficiencies. Your CPA can analyze your situation and give advice on how to use your business structure to meet your goals.

2. Can You Help Manage My Cash Flow?

Businesses, both small and large, can struggle with cash flow. Your CPA has the knowledge to sift through financial information and recommend strategies for budgeting, investing, and financing to stabilize your business and set it on track for growth.

3. What Records Do I Need to Keep?

Your record-keeping is at the heart of keeping good books, preparing for tax season, and meeting other legal obligations. Your CPA can assist you in this key area by telling you the receipts, tax documents, bank statements, invoices, and other business documents that must be maintained. 

A CPA helps you establish a process. They can even recommend accounting software for keeping your records and books.

4. What Tax Laws and Other Regulations Should I Be Aware Of?

The tax laws and regulations that apply to your business can vary by industry and location. Laws and regulations are also ever-changing. Your CPA can guide you through the labyrinth of business regulations and tax laws to keep you aware of deadlines, tax obligations, and potential compliance issues.

5. How Can I Grow My Business?

You’re not giving up any control if you ask your accountant about growing your business — you’re helping yourself. Your accountant doesn’t engineer your products and services or market them.

Instead, through financial reporting, they can provide insights to help you gain and maintain profitability. Your CPA can identify key performance indicators, monitor your progress, and break down your financial data to support growth strategies.

6. Can You Help Me Find Other Professionals?

An accountant who’s successfully remained in business typically works with many companies and has built a vast network of other professionals. Your CPA often can refer you to: 

  • Trusted attorneys
  • Business brokers
  • Financial advisors
  • Lenders 

With an accountant who knows your industry, you may get the bonus of connecting with other knowledgeable professionals.

7. What Will It Take to Exit My Business?

Retirement or just moving on may be far in the distance. However, planning your exit at the start of your business can set the strategic roadmap for growth. An accountant can help you value your company, revealing opportunities for improvement. 

You also can get a clear view of the tax implications. This helps you know that someone will be monitoring your tax situation as you move closer to leaving your business behind.

Find an Accountant With Zabel & Co.

An accountant on your team is more than a number cruncher; your CPA is a strategic partner. You can navigate financial matters, tax requirements, and regulatory compliance by openly communicating with your CPA, seeking regular updates, and understanding the impact an accountant can have on the success of your business.

At Zabel & Co., we are passionate about helping clients thrive now while working toward future goals. Call us today.