certified public accountant can do so much more for their clients than file their taxes once a year. Everyone wants to make sure they are making the best financial decisions possible, but not everyone has the resources to make those decisions on their own. Heath Hendrickson of Caledonia, NY is here to say that certified public accountants are available to help. You just need to know the right questions to ask them.
Heath Hendrickson of Caledonia, NY thinks the best question a client can ask is how they can achieve their highest profit margins. By keeping a record of all transactions, a business can help shed light on regular operating expenses and the cost of producing product or divvying out services. A CPA can serve as a second pair of eyes that can turn numbers into a story that shows opportunities for smarter spending in the year ahead.
The next question Heath Hendrickson of Caledonia, NY suggests asking is if all records are being kept properly. Every business should be prepared for the IRS to audit their company – even years after taxes have been filed and paid out. A CPA can ensure that all documents, employee wages, tax remittances and sales of assets are accounted for properly. Most records are kept in electronic form nowadays, which is fine as long as they are backed up properly.
Those who run a business should always ask their CPA what types of deductions they can take advantage of come tax season. Common deductions include the use of a company car, airline miles and home office expenses. Of course, the flipside is that every business owner needs to make sure they are paying enough in taxes. A CPA should be able to estimate the most likely total tax liability for a year and allow their client to pay a quarter of the amount every three months. The downside of paying too little is a lump sum in April, so it is important to pay the proper amount of taxes throughout the year.
If you are unsure of the status of employees, Heath Hendrickson of Caledonia, NY suggests asking your CPA whether or not the people who work for you are considered employees or independent contractors. There are different tax regulations based on the official status of a worker. Independent contractors, for instance, are in charge of making their own estimated tax payments whereas full-time employees fall under the responsibility of their boss.
Ultimately, every CPA should be an ally to their clients. Never be afraid to ask a question to your CPA as they may be able to provide guidance that can provide significant financial assistance.