4 Annual Issues To Discuss With A CPA

Anyone running a business and many people dealing with personal finances should conduct an annual review with a CPA. You should go into that meeting with a checklist, and you should include these four topics in your discussion.

Coming Changes to Accounting and Tax Laws

A big part of accounting is knowing how to put the system to work for you. That means you need to know what the laws are. However, you can expect federal, state, and even local laws to undergo some changes every year.

CPA services firms keep up with these changes, and they're prepared to discuss them with their clients. Ask your CPA what has changed and focus on what will affect your business or personal finances. Inquire about possible changes you might want to make to your tax and accounting practices, too.

Also, never go into these conversations assuming everything will be bad. New tax incentives or accounting rules, for example, might offer you a chance to save some money.

Year-Over-Year Changes

Keeping tabs on your year-over-year performance is important whether you're looking at business or personal financial numbers. Yes, there may be some cyclical issues driven by the economy, but you should be able to discuss those problems with a CPA. They can look at what's happening and tell you if they'd recommend some changes to protect your money or seize some opportunities.

Risk Profile

As you move forward, your risk profile will change. Individuals experience this because their personal circumstances change with age. For example, someone close to retirement will probably want to reduce their risk exposure to make sure they arrive at the retirement goals with enough money.

Businesses also have changing risk profiles. A startup will be more aggressive than an established company. You also need to manage the risks associated with shifting from one business mode to the next. If you're starting to see profits after a couple of years of building out, you should think about how to preserve that money and expand upon it without exposing your operation to too much risk.

Goals

Your CPA will always want to know your goals, and it's important to talk about them annually. Circumstances change, and your goals will change with them. You don't want a CPA operating on old assumptions. If you married in the last year, for example, that might shift some of your financial objectives. Keep your accountant in the loop so they can always provide advice tailored to your current situation.

For more information, reach out to CPA services.