What Should You Expect From Your CPA

What Should You Expect From Your CPA

If you’re paying a CPA to handle your business’s accounting, what should you actually expect from them? Getting your year-end work completed is one part of the relationship, but it shouldn’t be the only thing you receive.

There are really two things you should be getting from your CPA: the year-end work and the advice that comes with it. Knowing the difference can help you understand what you’re actually paying for and whether you’re getting the level of service you should expect.

The Year-End Is the Minimum

At a minimum, your CPA should make sure your year-end is completed properly and your T2 is filed on time. The appropriate report should also be completed based on the level of service you’ve hired them for.

That part of the process should be fairly seamless. You shouldn’t have to spend your time chasing your accountant to find out whether the year-end is going to get done.

Your CPA Should Be Planning Before Year-End

The year-end isn’t the only time you should hear from your CPA. A couple of months before year-end, they should be checking in, reviewing your internal documents, and looking at whether there’s anything you need to address before the year is over.

That’s where tax planning comes in. If your CPA sees a potential tax problem and tells you what you need to do while there’s still time to make a change, you have an opportunity to act on that advice. Once the year is over, some of those opportunities are gone.

Tax planning is the most important part of the service your CPA provides. It’s not just about finding out what you owe after the year is finished. It’s about getting advice early enough to do something about it.

Don’t Choose Your CPA on Price Alone

A more experienced CPA may charge more, but that experience can be worth paying for. They’ve seen more businesses, dealt with more situations, and learned ways to save their clients money. They can also get the work done more efficiently and on time.

If you’re only looking for the cheapest CPA, you might end up getting the cheapest level of service. An experienced CPA has seen more businesses and more situations, and they’ve learned more ways to save their clients money. That experience can be worth paying for, especially when they can also get the work done efficiently and on time.

If You Keep Switching Accountants

If you’re constantly complaining about your accountant or switching accountants every few years, it might be worth stepping back and looking at how your finance team is set up. The problem isn’t always the accountant. Sometimes the way your business processes are set up is part of the problem too.

That’s the bitter pill. You might need to look at what you’re doing as the business owner and make some changes to the way you’ve been handling things. Before you decide you need another accountant, take a step back and look at the bigger picture.

You Need Both the Product and the Service

When you’re working with a CPA, there are really two things you’re paying for. The product is the year-end work. The service is the advice you get along the way, especially the tax planning that helps you make decisions before the year is over.

If you’re getting the year-end completed but not getting that advice, you’re missing an important part of the service. You should be getting both.

What’s Next?

Your CPA is one part of the financial team supporting your business. Knowing what you should expect from that relationship makes it easier to see what else your business may need as it grows.

In the next part of this series, we’ll look at what happens when a business gets bigger and starts considering whether to bring these services in-house.

Please note: This content is for general information purposes only and does not constitute personalized accounting, tax, or financial advice. Reach out to us to book a personalized consultation based on your business and financial situation.

If you’re paying a CPA to handle your business’s accounting, what should you actually expect from them? Getting your year-end work completed is one part of the relationship, but it shouldn’t be the only thing you receive.

There are really two things you should be getting from your CPA: the year-end work and the advice that comes with it. Knowing the difference can help you understand what you’re actually paying for and whether you’re getting the level of service you should expect.

The Year-End Is the Minimum

At a minimum, your CPA should make sure your year-end is completed properly and your T2 is filed on time. The appropriate report should also be completed based on the level of service you’ve hired them for.

That part of the process should be fairly seamless. You shouldn’t have to spend your time chasing your accountant to find out whether the year-end is going to get done.

Your CPA Should Be Planning Before Year-End

The year-end isn’t the only time you should hear from your CPA. A couple of months before year-end, they should be checking in, reviewing your internal documents, and looking at whether there’s anything you need to address before the year is over.

That’s where tax planning comes in. If your CPA sees a potential tax problem and tells you what you need to do while there’s still time to make a change, you have an opportunity to act on that advice. Once the year is over, some of those opportunities are gone.

Tax planning is the most important part of the service your CPA provides. It’s not just about finding out what you owe after the year is finished. It’s about getting advice early enough to do something about it.

Don’t Choose Your CPA on Price Alone

A more experienced CPA may charge more, but that experience can be worth paying for. They’ve seen more businesses, dealt with more situations, and learned ways to save their clients money. They can also get the work done more efficiently and on time.

If you’re only looking for the cheapest CPA, you might end up getting the cheapest level of service. An experienced CPA has seen more businesses and more situations, and they’ve learned more ways to save their clients money. That experience can be worth paying for, especially when they can also get the work done efficiently and on time.

If You Keep Switching Accountants

If you’re constantly complaining about your accountant or switching accountants every few years, it might be worth stepping back and looking at how your finance team is set up. The problem isn’t always the accountant. Sometimes the way your business processes are set up is part of the problem too.

That’s the bitter pill. You might need to look at what you’re doing as the business owner and make some changes to the way you’ve been handling things. Before you decide you need another accountant, take a step back and look at the bigger picture.

You Need Both the Product and the Service

When you’re working with a CPA, there are really two things you’re paying for. The product is the year-end work. The service is the advice you get along the way, especially the tax planning that helps you make decisions before the year is over.

If you’re getting the year-end completed but not getting that advice, you’re missing an important part of the service. You should be getting both.

What’s Next?

Your CPA is one part of the financial team supporting your business. Knowing what you should expect from that relationship makes it easier to see what else your business may need as it grows.

In the next part of this series, we’ll look at what happens when a business gets bigger and starts considering whether to bring these services in-house.

Please note: This content is for general information purposes only and does not constitute personalized accounting, tax, or financial advice. Reach out to us to book a personalized consultation based on your business and financial situation.