The Best Questions to Ask an Accountant

Certified accountants offer the expertise and knowledge required to guide you through the taxes and financial issues unique to your company. However, to provide you with the support you require, you must find an accountant with the correct qualifications and experience. We’ve created a list of questions to ask an accountant to assist you in selecting the best accountant for your company.

1. What Documents Should I Keep?

For everything from financial statements to payroll records, you’ll need to keep separate records. Your accountant will probably advise you to keep records of your expenditures, gross receipts, and purchases so you may monitor the debits, credits, and profits of your company.

This includes:

  • Statements of bank accounts
  • Papers demonstrating payment or electronic funds transfers, such as canceled checks
  • Statements and receipts for credit cards
  • A deposit’s details (cash and credit sales)
  • 1099-MISC Forms
  • Invoice books

Find out if your accountant uses a particular piece of software or record-keeping system for their customers.

2. Are There Any Changes to Existing Business Regulations?

Any recent modifications to tax law and other business rules that can affect your firm will be well-known to your accountant. The IRS lists a few modifications that could affect tax returns filed in 2023. Among the changes are:

  • There are no further stimulus payments
  • Several tax credits are reinstated at 2019 levels.
  • No deductible charitable gifts over the line
  • The Premium Tax Credit may be available to more individuals.
  • The qualifications for claiming a tax credit for clean automobiles are altered under the Inflation Reduction Act of 2022.

There may be more laws and regulations at the state and local levels in addition to these few changes at the federal level. An accountant will assist in making sure you are legal in each of these instances. Given that tax laws change every year, you should do this every year.

3. How Could One Get Ready for Tax Season?

Preparing for tax season as early as feasible is always a smart idea. However, if compiling your documents and filing your return gives you concern, an experienced accountant can lessen your stress in this situation.

One of the main benefits of working with an accountant is that they help you plan for filing your taxes all year long, so you won’t have to rush in April as the deadline draws near. You should be able to ask a possible accountant what methods and procedures they employ to complete tax returns effectively and quickly.

4. What Costs of a Firm Are Tax Deductible?

You should be aware of which business expenses are tax-deductible as a conscientious business owner to optimize your tax savings. Your accountant can assist in determining whether a deduction is available if you let them know what business costs you incur or anticipate incurring in a particular year. If you want to ask about a specific deduction, do some study first because the IRS provides a comprehensive breakdown of what is allowable as a business expense.

5. What Type of Business Structure Is Ideal for My Circumstances?

The method you from your company may be determined by its size and scope, but if you have some flexibility, you can work with your accountant to choose the structure that will be most advantageous for your circumstances. The following five categories of business structures exist:

  • A corporation, or (C Corp)
  • Limited-risk enterprise (LLC)
  • Partnership
  • Corporate S (S Corp)
  • Single-person business

You should be careful to arrive at your meeting with information about your company’s operations because your accountant will be better able to understand the tax and legal subtleties of the various structures.

6. What Tax Obligations Do I Have?

Every business owner needs to be informed of how much they will owe in taxes, including projected tax payments every quarter. Ascertain from your account how much money you should set aside to cover your tax liability and when you must make a payment.

Additionally, inquire with your accountant about how income taxes will affect your tax liability. Planning is preferable to waiting until the last minute in April to begin your tax filing. Before-tax day, don’t forget to max out the appropriate accounts to lower your taxable income. If it turns out that you owe the IRS money, you can decide how to pay your payment most effectively by consulting with your accountant. If you do receive a refund, think about the best way to invest it and, if necessary, seek advice from your accountant.

7. How Can I Expand My Company?

Although they won’t be experts in marketing or engineering, your accountant will be able to offer advice on how to expand your company financially. One of the keys to your growth will be profitability, and your accountant may assist you in figuring out your break-even point.

Work With Your Part Time Accountant

Consider talking with Your Part Time Accountant right away if you don’t have the time or the expertise to handle your accounting. With unlimited assistance, a dedicated accountant, and open pricing, we offer customized services. We can assist with entity formation, accounting services, and tax preparation in addition to these other services.