Running a business is tough. As an entrepreneur, you have to wear many hats and manage countless responsibilities. One of the most critical relationships for any business owner is the one with your certified public accountant. Your CPA is like your right-hand person when it comes to managing your company’s financial health. 

But too often, entrepreneurs only interact with their accountant in the months leading up to tax season. Sure, getting your taxes filed accurately and on time is crucial. But limiting your conversations with your CPA to just tax preparation means you’re missing out on their insights and expertise throughout the rest of the year.

In this post, we’ll have a real talk about why you need to take a year-round approach to working with your certified public accountant. I’ll share tips on strengthening your relationship with your CPA, key times you should be connecting with them, and how to optimize your partnership during tax season. 

My goal is to provide actionable strategies so you can tap into your accountant’s knowledge 12 months a year. Because leveraging your CPA’s skills more regularly will empower you to make smarter financial decisions, achieve growth, and avoid costly missteps. Let’s dive in!

Why You Need a CPA 12 Months a Year, Not Just at Tax Time

Taxes are complicated. That’s why you depend on your CPA to guarantee you file accurate returns and pay the lowest legal tax amount, right? But here are 5 crucial reasons why you need your accountant’s input throughout the year:

1. Strategic Business Planning

Your CPA has the financial acumen to assess your company’s big picture goals and advise you on long-term strategies. For instance, they can offer insights on expanding to new markets, forecasting future capital requirements, weighing risks and payoffs of growth opportunities, and more. Their wisdom helps you make strategic decisions. 

2. Cash Flow Analysis

Cash flow issues can put a business under. Your CPA should regularly review your cash flow statements and use financial modeling to identify ways to improve cash flow. This empowers you to make smart money moves to boost liquidity and build healthy cash reserves.

3. Budgets and Cost Control

CPAs are budgeting gurus. Your accountant can create budgets, analyze budget variances, pinpoint major cost drivers, and spot opportunities to control expenses. With your CPA’s assistance, you’ll gain total visibility into where your business is spending money.

4. Financial Reporting

Beyond taxes, your CPA can prepare detailed financial statements, reports, and metrics to help you fully understand your company’s fiscal health. This includes profit and loss statements, balance sheets, financial ratio analysis, and more. 

5. Advisory Services

CPAs provide invaluable advice on many topics, from payroll and inventory management to selecting accounting software, investing profits wisely, and preparing for audits or the sale of your business. Their counsel helps you avoid financial risks.

As you can see, your CPA brings a wealth of specialized expertise that’s useful all year long, not just during tax season. By collaborating with your accountant regularly, you’ll have the financial insights you need to make savvier decisions. Now let’s look at building a rock-solid relationship with your CPA.

Building a Strong Relationship with Your Accountant

To leverage your certified public accountant’s skills to the fullest, you need to foster an open, cooperative relationship built on trust. Here are some tips:

– Define your CPA’s role and expected deliverables clearly upfront 

– Establish preferred communication methods and response times

– Set a consistent schedule for touch-base meetings

– Give timely access to needed documents and financial records

– Involve your CPA in major business decisions 

– Don’t wait until the last second to request help or ask questions

– Be transparent about any financial challenges or uncertainties 

– Ask your CPA to explain unfamiliar financial terms and concepts

– View your CPA as a trusted advisor, not just a vendor

– Respect your CPA’s time and expertise

– Follow through on your CPA’s recommendations

– Pay your CPA on time per your agreement

– Express appreciation for your CPA’s contributions to your success

Investing time and effort to develop rapport, effective communication, and trust with your accountant lays the foundation for a win-win relationship. When both parties contribute, you’ll be able to tap into your CPA’s specialized skills whenever you need them.

Now let’s look at key times throughout the year you should be connecting with your financial guru.

Key Moments to Connect with Your CPA Throughout the Year

To fully leverage your CPA all year long, make sure to loop them in during these important happenings:

Business Planning and Budgeting (January-February)

– Review last year’s financials and tax returns to inform planning

– Set targets, forecast expenses, and finalize annual budgets

– Discuss potential business changes you’re mulling

Sales Tax Filings (Quarterly)

– Verify sales tax filings and payments are accurate and on time

Financial Check-ins (Quarterly)

– Review financial statements together 

– Flag any cash flow, profitability or budget issues

– Brainstorm improvements or mid-year adjustments

Tax Planning (September-October) 

– Project tax liability and identify tax reduction tactics

– Discuss upcoming tax code changes that could impact your burden

– Review timing of deductions and payments to optimize cash flow

Year-End Planning (November-December)

– Confirm your CPA has all needed documents for tax prep  

– Discuss any major transactions, purchases, moves, etc. from the year

– Explore year-end tax planning to maximize deductions

Tax Season (January-April)

– Finalize returns, file extensions properly if required

– Pay any outstanding tax liability

– Begin preparing Q1 estimates

While those examples represent typical CPA touchpoints, contact your accountant whenever unexpected financial questions or issues come up. Their job is to steer you wisely no matter what arises. 

Now let’s explore how to optimize your CPA relationship during tax season.

Making Tax Season a Breeze with Your CPA’s Help 

Most business owners heavily rely on their CPA to sail through tax season. Follow these best practices to maximize your accountant’s expertise during this demanding time:

Get Organized

– Gather tax documents in one place for easy access  

– Use a system to track different deduction types

– Note any major changes versus the previous year

Check In Early 

– Meet with your CPA 1-2 months before tax season kicks into high gear

– Provide needed documents and overview your situation

– Ask questions early so your CPA has time to respond

Send Information on Time

– Don’t make your CPA chase you for details 

– Provide organized records by the date requested  

– Verify accuracy since your CPA depends on your information

Understand Expectations

– Confirm your CPA’s expected turnaround time  

– Agree on preferred communication methods

– Verify who will file returns and how

Don’t Delay Filing

– File an extension if more time is truly required

– But don’t wait until the last minute to request an extension

Review Returns Thoroughly

– Walk through completed returns with your CPA  

– Ask questions and understand all contents before signing

Plan Ahead 

– Discuss any tax code changes on the horizon 

– Outline action steps to prepare for next tax season

Following these pointers will help you and your CPA collaborate seamlessly amidst the controlled chaos of tax season.

Conclusion

I hope I’ve provided a roadmap to guide you in leveraging your certified public accountant’s skills 12 months a year rather than just at tax time. 

By meeting with your CPA quarterly, involving them in key business decisions, and optimizing your working relationship, you’ll benefit from their objective financial expertise. This will lead to improved profitability, tax savings, smarter investments, controlled expenses, and fewer costly financial mistakes.

Commit to year-round collaboration with your accounting pro. Trust their counsel. And get ready to watch your business thrive with the support of a trusted financial advisor!