A good CPA is invaluable when it comes to organizing your finances, and this is never truer than when it comes to the area of personal taxes. Here, Glenn Sandler, CPA founder of G.I. Tax Services lists five questions to ask your CPA that could provide substantial benefits for your finances well into the future.
What Information Do I Need to Keep?
In the world of taxes, paperwork is ubiquitous and keeping your head above water entails knowing exactly what documents you need to keep and which you can dispose of. Your accountant will let you know the difference between the two and will even serve as a reserve for your information. A clear picture of your financial information will help the CPA optimize the assessment statements provided to you.
How Can I Save More on My Taxes?
This is perhaps the question that is the most commonly asked of CPAs. Ultimately one of the most critical times of the year for an accountant is tax season, and they can help you leverage your situation to find numerous tax breaks. By speaking with your CPA, you will be able to find out if you qualify for any deductions or special credits and how you can claim them. On occasion, the accountant may also be able to find unique tax advantages based on your purchases and investments.
What Direct Business Expenses Can I Deduct?
In a business, several expenses are often incurred and more often than not, some of those expenses can be deducted when filing taxes. Ask your accountant which of your expenditures can be classified under business deductions. Usually, these deductions may be for costs of services that you’ve provided, equipment that was needed for your business, transportation costs, and others.
Is There Anything I Should Do to Increase My Savings?
One of the most important things to discuss with your CPA is how you can maximize the amount of money that you are putting away. By asking your accountant how you can increase your savings, you will most likely receive advice ranging from buying more efficient equipment to lower your electric costs, to the more financially related portfolio options you may want to become involved in. Savings can be interpreted as both those related to taxation as well as those related to fiscal planning. Your CPA will be able to help you with both.
How Can I Better Manage My Cash Flow?
A positive cash flow is essential for any business, and it is something that your accountant can certainly advise you on. By looking through the amount of money brought in and the amount that flows out, your CPA can analyze areas where you can improve or cut back spending. You may have overlooked a cash flow tendency and your accountant will be able to help you understand how to better manage these issues.