Email Adam Email
Financial
Jun 15, 2015

Why You Should See Your CPA More Than Once A Year

Sponsored Content provided by Adam Shay - Director of VCFO Services, Red Bike Advisors

Many people have the view that you only see your CPA once a year – at tax time. However, with that approach people are typically leaving money on the table. While keeping clients in compliance is a key role of a CPA firm, a bigger driver of value is the delivery of tax savings to clients. That can marginally be done during the crazy tax season months of February through April, but is better approached during additional annual, biannual or quarterly meetings. We offer all our tax season clients a Growing Forward document that highlights key points and high-level ways that they can save on taxes. It also includes important information on any upcoming tax law changes that could impact them. 

However, detailed tax planning typically requires a more thorough dive into expectations and assumptions for the current year, and is best approached in the middle to latter part of the year, when more of the current year is known. With that approach, a competent CPA firm should be able to deliver tax savings that are greater than the cost of a tax planning engagement.

We need to note that tax planning is not going to be of value to everyone. For some people, there is simply nothing that can be done. We recommend tax planning for business owners, individuals with a variety of investments or rental properties, and for people with unusual tax events or changes in their individual situations.

What does tax planning involve?

There are several steps to the tax-planning process. They include:

  • Gathering historical data on which to base or compare assumptions.
  • Gathering current year financial data and assumptions.
  • Taking the information and generating projections for the current (and potentially) future years.  This is the base as-is-expected scenario.
  • Performing a thorough analysis of the projections and known information and making recommendations.
  • Using the recommendation to create alternative projections to illustrate tax savings.
  • Documenting the recommendations and results.
  • Reviewing the results with the client and identifying the necessary course of action for the remainder of the year.
 
What are the expected results? 
  • To have a better idea of what the current and future tax year will look like. At a minimum, the process should remove any unnecessary surprise of tax balances due. In addition, it's helpful in determining if the taxpayer needs to make additional estimated tax payments for the year.
  • To get a recommended course of action to reduce the expected tax burden for the current year.
  • To get a better understanding of how various financial pieces interact and affect the overall tax picture.
My goal today was to expose more people to the concept of tax planning. I encourage you to take a look at it and to consider a tax planning engagement with a CPA firm to take a more proactive approach to taxes.

Adam Shay, CPA (NC License Number 35961), MBA, is managing partner of Adam Shay CPA, PLLC. He focuses on minimizing taxes and improving the financial results of entrepreneurs, and is actively involved in supporting the Wilmington entrepreneurial and startup community. For more information, visit http://www.wilmingtontaxesandaccounting.com/ or email him at [email protected]. He can also be reached by phone at 910-256-3456.

Other Posts from Adam Shay

Redbikeadvisors block[55]
Ico insights

INSIGHTS

SPONSORS' CONTENT
2022052 75 142344351

Elevating Wilmington: Why a New, Taller Bridge is Essential for Our Progress

Natalie English - Wilmington Chamber of Commerce
Headshotrosaliecalarco 1182131047

Look Out for Hurricane and Gold Bar Scams

Jessiepowellheadshot webversion

5 Reasons to Build Custom Franchise Software

Jessie Powell - Wide Open Tech

Trending News

Endowment Announces $14M In Housing Grants

Emma Dill - Sep 30, 2024

Report: UNCW Has $3.2 Billion Economic Impact statewide

Emma Dill - Sep 30, 2024

Element Outdoor Living Wins National Award For Oceanfront Project

Staff Reports - Oct 1, 2024

Two Join Cornerstone Business Advisors Team

Staff Reports - Oct 1, 2024

Workers Strike At Wilmington's Port, Halting Operations

Emma Dill - Oct 1, 2024

In The Current Issue

MADE Winners: Working To Transform The Landscape

The company primarily serves professional markets, including landscape contractors, golf courses, NFL and MLB practice facilities, soccer co...


MADE Winners: Distillery Maintains Spirit Of Growth

Founded in 2019 with a grand opening in early 2020, just before the pandemic hit, the 4,800-square-foot distillery has a cocktail bar, loung...


MADE Winners: Tayloe/Gray Works To Lift Manufacturers

Nathan Tayloe said, “Manufacturers are really good at creating their products but usually are not very good at marketing those products. So...

Book On Business

The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2024 Power Breakfast: The Next Season