Getting Organized to Work With a CPA

Working with a CPA can feel like having a financial superhero on your team! If you want to make the most of this powerful partnership, it’s essential to come prepared. Here are four tips to help you get organized and ensure you maximize the value from the CPA-client relationship!?

Organize Your Tax Documents?

Let’s start with a crucial first step – managing all your documents. Think of it as creating a treasure trove of financial information! Having everything organized not only makes your CPA’s job easier but also ensures you don’t miss out on any tax savings opportunities. Remember, your CPA can only work with the information you provide, so let’s make sure they have all the goods!?

Start by gathering information like annual tax statements, expense records and receipts, financial statements, and investment information. The trick is to stay organized throughout the year. Taking a couple of minutes here and there during the year to organize your information will save you tons of time (and stress) later.?

Personally, I love going digital. Got a receipt from the gas station? Snap a picture and save it. Receive important mail? Snap a picture and save it. Receive an email with important information? Print it to PDF and save it (and any attachments). Now-a-days with the magic?of cloud storage this only takes a couple of minutes, and it will save you hours in the long run. Plus, your CPA will be thrilled to know all your information can be sent over digitally.?

Have Your Prior Year Tax Return Handy?

Your prior year tax return is like a financial roadmap for your CPA. It provides a baseline of your financial history and helps your CPA understand your specific situation. Think of it as giving your CPA the keys to your financial time machine!?

A CPA can spot any mistakes or missed opportunities to maximize your tax savings and use that as a starting point for future strategies. Sometimes, it’s even beneficial to amend a prior year tax return. So, keep that tax return handy—it’s your ticket to a smoother, more efficient financial future.?

Come Prepared to Ask Questions?

Your CPA is there to help you, so don’t be shy! Asking questions is the best way to tap into their expertise. Got questions about potential deductions or credits? Ask away! Curious about strategies to maximize your tax savings? Fire those questions off!?

Tax planning is just one piece of your overall financial puzzle. Ask how taxes will impact your retirement planning, education planning, investments, major purchases, and significant life events. No question is too small—what’s common knowledge to us may not be to you, and we’re here to help. ?

Understand the Fee Structure?

Let’s talk about money. Understanding your CPA’s fee structure is crucial for a smooth, transparent relationship. We don’t want any “sticker shock” when you receive your invoice!?

Find out if your CPA charges by the hour, per service, or offers a flat rate. Clarify what services are included in the quoted fee and if there are any additional charges. Ask about the billing process, including when payment is expected and what methods are accepted. Most importantly, evaluate the CPA’s expertise, the complexity of your tax situation, and the level of service provided to ensure you’re getting value for your investment.?

Getting organized to work with a CPA doesn’t have to be a daunting task. These steps not only make your CPA’s job easier but also empower you to take control of your financial health. So, gather those documents, jot down your questions, and get ready to make the most of your financial superhero!?