As the year draws to a close, it is sure to be a busy time for your business. Amidst holidays and festivities, your business still needs to ensure that all of your financial affairs are in order.
Luckily, your CPA knows exactly what needs to be taken care of at year-end to make sure your finances and tax documents are ready to go. In this article, I want to walk you through what you can expect your CPA to provide for you as we approach the new year.
The Role of a CPA Before Year-End
Knowing what to expect from your CPA sets your business up for success and peace of mind as we enter the new year. If your CPA checks all of the boxes below, then you can rest assured that your finances and tax documents are being properly managed.
Here are the key things you should look for from your CPA:
Year-End Financial Review
Going through and analyzing your financial statements at year-end is something your CPA should be doing without question. This involves examining your:
- Balance sheets
- Income statements
- Cash flow statements
After reviewing your financial statements, a good CPA should identify financial discrepancies, irregularities, and areas your business can improve. By identifying these, you can use the information to set your business up to be even more successful in the new year.
Tax Planning
In addition to analyzing your year-end finances, your CPA is also responsible for tax planning on behalf of your business. This involves reviewing your financial documents to find tax-saving opportunities, deductions, and credits that your business is eligible for – saving you money.
A proactive CPA is going to provide you with guidance on year-end tax strategies to further minimize your tax liability. This strategic approach leaves no money on the table and may even uncover potential savings that may have been overlooked otherwise.
Compliance with Tax Regulations
A great CPA knows how to stay compliant with all tax regulations and still save you money. Your CPA will know how and when to file and submit the necessary forms. They will also be able to address any tax-related issues that may arise and provide answers for any other inquiries you might have. Again, this provides you with peace of mind and protects your business from potential penalties or legal complications.
Preparing Financial Statements
Accuracy is key when it comes to preparing your financial statements. Your CPA should review all documents and verify that all submitted financial statements are not only accurate but also fully compliant with the latest accounting standards. This attention to detail is a requirement of a good CPA and will also help to build trust with stakeholders, investors, lenders, and regulatory bodies.
Financial Projections
As the year comes to a close, it is the perfect time to look ahead and forecast what the future holds for your business. Your CPA can assist you by preparing financial projections for the upcoming year. These financial forecasts are a great data-driven tool to assist your decision-making as you seek to do what is best for you and your business.
Navigating challenges and capitalizing on opportunities is much easier when you have the data in front of you.
Identify Tax Credits and Incentives
As mentioned previously, a key method for saving your business money is by identifying tax credits and incentives. Each industry has its own set of tax credits and incentives to take advantage of.
Your CPA should be well–versed in the opportunities that apply to your business. Taking advantage of these not only saves you money but allows you to take your savings and put them right back into growing your business.
Customized Advice
No two businesses are the same, and it is imperative that your CPA understands that as well. Specifically, you should be provided with advice custom-tailored to both your industry and your business model.
Working closely with a CPA who understands the nuances of your industry and can provide you with industry-specific strategies can be a game changer for your business as we usher in the new year.
Searching for a CPA to Help with Year-End?
As we approach the end of the year, it is important to be working with a CPA who understands your needs and the needs of your business. Providing you with a year-end financial review, tax planning, and a guarantee of full compliance with all tax regulations, financial statements, and projections, and identifying tax credits and incentives to save your business money are all things that you should expect from a good CPA.
At the end of the day, you want a CPA who is dedicated to helping your business navigate the complexities of year-end processes and set your business up to thrive in the upcoming year.
If you are looking for a CPA who is dedicated to seeing your business grow and succeed in the new year, consider working with Pasquesi Partners. We have a team of CPAs with years of experience helping businesses like yours through personalized and comprehensive financial services.
Contact us today to see how we can help your business!