Take advantage of your tax season takeaways
May 3, 2021
What do accountants do with themselves after tax season? Actually, the same thing they do during busy season: They work hard for their clients. The only difference is that instead of cranking out tax returns, they help clients work through other aspects of their financial health—including issues revealed during the yearly tax return process.
That’s why the best time to work with your accountant on any takeaways or questions is right after tax season…when everything is fresh in your mind. Here are some examples:
Is there a way to reduce my tax bill?
Your accountant can help you understand opportunities for lowering your tax bill. A popular option is contributing money to an individual retirement account. Work with your accountant to see if this is a strategy that makes sense for you—and if not, to discover other ways to save.
How do I handle <insert complicated tax situation here>?
If your tax situation is outside the basics—you experience a major life change (adopting a child, receiving an inheritance), you own rental properties or you have complex investments—an accountant can help you structure your finances appropriately for the next tax season.
Now, if you’re a business owner, you may have additional questions, such as:
Am I still using the right business structure?
If you own a business, it may be time to move to another structure with more advantages for your situation. You may have started as a sole proprietor, but have grown enough that a limited liability company (LLC) or S-corporation structure would be a better fit. Your accountant can help you assess the options.
How can I adjust my cash flow? Manage my debt? Adjust my budget? Keep payroll accurate? Handle unpaid invoices?
There’s so much to keep up with as a small business owner. An accountant can work with you to manage your revenue through ebbs and flows, consider the best borrowing strategies for your business, create a realistic and accurate budget, handle your payroll and set up invoice systems with automatic reminders for your customers—freeing you to work on your business.
It’s hard to be objective about our own financial situations, whether personal or business, and that’s where accountants excel (no pun intended). They bring so much insight and experience to the table. Why not give your accountant a call today, and see how she or he can help you be prepared for whatever next tax season brings?