Reasons Why Your CPA Is Your Greatest Asset

Time and time again, I see entrepreneurs make the same costly mistake - thinking they need to do everything on their own. Which, don't get me wrong... I've been there, done that. No judgement! But afterwards, reviewing the ultimate cost of that decision is almost always more costly than simply getting help with what was outside my scope of genius, to begin with.

Making large purchases or financial moves without consulting your CPA and without the education based know how, is extremely risky and kind of silly, if you ask me. To go back to what I laid out in Starting your Books Right [[link blog]]:

I do not feel comfortable doing a big thing without either:

a) consulting an expert in the field I know little to nothing about or
b) doing my own research that is data-based and drawing logical, educated conclusions.

And I stand by this a thousandfold.

For these reasons and more, I am here to help explain why you should rely on your tax professional and how it will actually benefit you.

Before you make any large financial moves or changes, always consult with them. No one will know how it will actually affect you more than they will. Unless you straight up lie to them (do not do that), they are the only person who actually has the full view of your financials and the education and knowledge base to properly advise you.

Now, I am not saying to bug them when you want to buy a new printer or upgrade your computer. No, no, no. I am talking large-scale equipment, building expansions and properties; large purchases and sales like that.

An easy rule of thumb is, if you need to finance it, it's probably a good idea to check in with your accountant. They will help guide you on how to make the purchase so that it benefits you. They are also the ones who will let you know how it will affect your tax bill at the end of the year. Both very important.

It always feels like everyone complains about their tax bill, but rarely do I see anyone go in before years end, to talk to their accountant about what can be done to mitigate it. Work the system, do not let the system work you.

Another time to reach out to them is if you are doing your business’ bookkeeping yourself and are stumped as to how to handle a situation. Ask them!! Or read my post on Reasons Why Your Bookkeeper is Your Best Asset.

You are going to hear me say this a bajillion times – your CPA is your greatest tool. Especially as a small business. They worked really hard to get where they are, and that generally means that they are an abundance of knowledge.

Or think of it this way, you are already paying them!! Let your dollar and your time stretch further.

Even if they charge you in 15 minute increments to explain something small, it is worth it.

Having them explain it to you, correctly, the first time will be a great learning opportunity for you. It will also save you an incalculable amount of time researching and trying to figure out the answer. It can also save you money in the long run because if you misunderstood your internet research, or relied on a bad source, the CPA will have to go in and fix it. Costing way more than the initial 15 minutes.

It is extremely important to have open communication with your accountant and keep them in the loop. I have seen those who choose to act impulsively, and boy do they suffer the consequences.

Getting advice from your CPA is strictly for your benefit because I can guarantee you that their business does not hinge on 15-60 minute conversations with clients. It just doesn't.

It can also be important to retain a CPA who is knowledgeable in your industry. Every industry has its own unique situations, and it is vital that your CPA is 100% up to date with said situations. A great example I like to give is the cannabis industry. It is vital that cannabis accountants are fully aware of 280e, how it works and how it impacts their clients. Otherwise, the ramifications are costly.

Overall, communication is the ultimate key. It is important that you and your accountant are on the same page. If not, the tax implications for you can be catastrophic. At the end of the day, your tax bill will not be your accountant's fault if you do not involve them in purchases or sales.

If you are confused as to the different financial providers, you can read my post on Difference Between CPA, LTP and Bookkeepers.