Improving Results With Your CPA

Improving Results With Your CPA

Published on October 17, 2023

Effective tax planning is crucial for business owners to optimize their financial health and eventual net-worth.


While ISCPA takes the lead with our clients with proactive tax planning and communication, ordinary CPAs do not. This is why many business owners become frustrated by CPAs who fail to communicate critical information or are not proactively mitigating taxes. Ordinary CPAs tend not to initiate any action, without direction from you. This article helps business owners interested in improving results with your CPA, at least until you’re able to work with us.

Business owners must establish strong communication and collaboration with their CPA. 


Best Practices in Communication and Collaboration


Establish Regular Communication Channels:

   – Schedule regular meetings with your CPA to discuss tax planning strategies, review financial data, and address any concerns.

   – Maintain open and transparent lines of communication throughout the year, not just during tax season.

Share Complete and Timely Financial Information:

   – Provide your CPA with accurate and up-to-date financial records, including income statements, balance sheets, and cash flow statements.

   – Share information about any significant changes in your business, such as expansions, acquisitions, or changes in ownership.

Set Clear Goals and Objectives:

   – Clearly communicate your financial goals and objectives to your CPA. Whether it’s reducing tax liability, maximizing deductions, or planning for future investments, your CPA should understand your priorities.

Collaborate on Tax Planning Strategies:

   – Work together with your CPA to develop tax-efficient strategies tailored to your business. This may involve structuring your business entity, optimizing deductions, and exploring tax credits.

Be Proactive, Not Reactive:

   – Don’t wait until tax season to consult your CPA. Engage in proactive tax planning throughout the year to identify opportunities for savings and address potential issues in advance.

Common Oversights and Errors

Inadequate Record Keeping:

   – One of the most common mistakes is failing to maintain organized and complete financial records. This can lead to missed deductions, errors in tax calculations, and compliance issues.

Lack of Communication:

   – Many business owners only engage with their CPA during tax season, missing out on opportunities for year-round tax planning. Effective communication throughout the year is essential for maximizing results.

Ignoring Changing Tax Laws:

   – Tax laws are constantly evolving, and failing to stay informed about changes can lead to missed opportunities or compliance issues. Regular updates and discussions with your CPA are crucial.

Not Leveraging Tax Credits:

   – Some businesses overlook valuable tax credits available to them, such as research and development credits, energy-efficient incentives, or hiring credits. Failure to take advantage of these opportunities can result in higher tax bills.

Not Exploring Tax-Efficient Structures:

   – Choosing the wrong business structure or failing to adapt to changing circumstances can lead to unnecessary tax burdens. Collaborate with your CPA to assess and adjust your business structure when necessary.


Maximizing tax planning results requires effective communication and collaboration between business owners and their CPAs. If you are committed to a relationship with a CPA who does not take initiative, you have two good choices – immediately change CPAs, or take control of the relationship until you’re ready to change CPAs. By following best practices in communication, sharing complete financial information, setting clear objectives, and proactively planning for taxes, business owners can achieve their financial goals while staying compliant with tax laws.

Common oversights and errors, such as inadequate record keeping, lack of communication, and ignoring changing tax laws, can compromise tax planning outcomes. Avoiding these pitfalls and working closely with your CPA year-round will ensure that your business optimizes its tax position and maintains financial stability. Ultimately, a strong partnership with your CPA is the key to success in the complex world of tax planning for businesses. If you are unhappy with your current CPA or simply interested in a second opinion on your current tax health, schedule a free consultation with ISCPA to see how we can help you. 


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