End-of- Year Questions to Ask Your Accountant

The end of another year has passed. Like all businesses, your firm requires some accounting services, and I trust you will not be doing them since you went into law. So, you will probably need to turn to an accountant. When you begin talking to them, you might want to pose a few – if not all – of the following questions.

Are there any changes in tax laws that will affect me?

Ask if there are any new tax regulations that have taken effect in the past year that may impact your business. Tax changes come with little public fanfare so your accountant may know about them, even if you don’t.

How should I prepare for the upcoming tax season?

One way to avoid the back and forth on documentation regarding your taxes and finances is to ask your accountant how to organize your financial records. Ask for a list of documents they will need and what steps you can take to make filing your taxes go smoother. Then, punch those items off the list every tax filing. This can make things easier for your accountant, but more importantly it may reduce extra work and costs for you in the long run.

How can I minimize my tax liability?

You will want to discuss ways to reduce your tax burden. These can be things such as deductions or credits you are not currently taking or any year-end tax planning opportunities. No one wants to leave money on the table. Why would you allow yourself to do that? Like the last two questions, doing it correctly the first time may save you money every time.

What can I do to improve my cash flow?

Here you can focus on your performance. Ask your accountant if there are ways that you can manage your cash flow more effectively such as budgeting, forecasting or managing expenses. You might even need to bill differently. Allow your accountant to be creative and you might be surprised to find your cash flow increasing or at least depositing faster.

Are there any financial red flags in my business?

This may seem like something you can handle yourself, but it is helpful to have an outside perspective – especially from someone who is keen to numbers. You should specifically ask your accountant about potential issues or areas of improvement regarding your financial statements. Just like lawyers, accountants give their best advice when they’re being paid. So, let your accountant have a chance to comment on your numbers while you’re paying for end-of-year services.

Conclusion

With most of these, in addition to this past year’s implications, this is also a good time to ask if there’s anything you should change for next year or beyond. Remember, these questions may just be the starting point for you and your accountant. Conversations like these can help save money on future accounting services and taxes, but can also help reduce stress and headaches in future.

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