The Tax Cuts & Jobs Act of 2017 that was signed in to law in December is the most sweeping overhaul of taxes in our country since 1986. With it comes substantial changes for those of you with pass-through companies, folks in states with high real estate values and property taxes, for those of you who used to itemize deductions, and that is just to name a few. It is a very important time to make sure that you have the best person on your team to help with tax strategy and navigate the jungle of all things taxes.
There are opportunities you could be taking advantage of to minimize taxes, and a good CPA will help you do that.
We put together some tips on how to find this critical resource, or make sure the one on your team now is the best one for you:
1. Ask people you trust for a referral to their CPA. This might be your financial planner, business attorney, others in your industry, bankers. These are people who work often with CPAs and will know reputable experts.
2. Does your accountant have expertise in serving clients like you? If you have a small business, a pass-through entity, are a 1099 employee, a high earner, have stock options, whatever your situation is, you want an accountant who has expertise in serving clients like you.
3. How much do they charge? Prices vary and depending on the complexity of your tax life, so make sure the person you engage with is the best fit for what you need accomplished.
4. How communicative are they? If you need someone to keep on top of you for key filing deadlines, make sure your CPA will provide that.
5. Is the accountant a tax preparer or tax strategist? Will they be proactive with tax savings strategies, or are they just looking to fill out your 1040? Remember, your accountant can have great impact on how much money you keep. You want someone on your tax team who is an expert in their field, understands the tax complexities of your industry, and keeps current with the changes in tax law.
6. Do you click with your CPA? Meet with your prospective CPA in person. This is a very important part of your team. You want to make sure you are a good fit for one another.
7. Have you checked their credentials? You can reach out to your state board of accountancy to check in on this, as well as the National Society of Accountants and American Institute of CPAs.
8. Does your CPA collaborate with your other key financial advisors? Your accountant should be speaking with your financial planner, actuary, and any other resource that can affect your financial health.
Make sure you and your CPA are clear on expectations of what you expect from one another. If you would like referrals to any of the CPAs we collaborate with for our clients, please let us know.
