The importance of establishing a strong working relationship with your CPA is crucial to feel comfortable trusting their guidance and relying on their advice. Having candid conversations on a regular basis will not only deepen your relationship with your accountant, but will also set your business up for success by tracking key performance indicators along the way. Now more than ever, it’s imperative to assess changing needs and financial obstacles with confidence. We’ve rounded up three of the best conversations to have with your accountant on a quarterly basis, which will ensure clear vision of sustainability and growth ahead.

Tax Planning: Accountants provide an overall view of your tax situation and are capable of running projections creating a deeper understanding of tax liability and tax opportunity now and in the future.  CPA’s carefully study tax laws, regulations, and monitor changes in existing tax code, which will strategically optimize your tax opportunity. Having a firm understanding of tax liability and additional advantageous deductions allows you to properly prepare for year end.

Financial Progress Reports: These formal records analyze financial activity and provide information regarding the overall position and performance of your business.

  • Balance Sheets – Think of these reports as a snapshot of your company’s assets, liabilities and equity at the end of a specified date. A balance sheet informs you of a business’s worth at a point in time to better understand its financial position.

  • Profits and Loss Statement – This report summarizes the revenues, costs, and expenses during a specific period of time.

  • Cash Flow Statement –  This statement details income the company receives from ongoing operations, investment sources and cash exchanged with other entities. Cash flow statements will indicate whether or not your company stayed positive or, perhaps, went into the negative.

Remember, as your CPA examines your financial documentation, they will be able to provide insight into the overall financial strategy of your business, often times providing feedback to better its position.

Profit Margins: Discussing the profit margin with your CPA is imperative as it is a huge indicator of whether or not your business is succeeding or notwithstanding. Profit margins are used by investors, creditors and businesses to determine financial health and growth potential.

The intention is to build, deepen and maintain a working relationship with your CPA overtime. You should meet regularly for a financial check up and most certainly during the course of tax season to ensure you are on the right track.

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