In this episode, Jose and Sharina discuss why working with an average CPA could hurt your business and tax strategy. Too often, business owners assume that a tax preparer will handle all their needs, but a reactive approach can leave you missing key opportunities to reduce your tax burden.
Jose outlines a scenario where a high earner expects to offset a windfall with business losses, but when they’re unaware of the rules, they miss out on critical strategies that could’ve helped them lower their tax liability. Working with a typical tax filer who doesn’t take a proactive approach could result in more expenses or missed deductions, and even worse, it could cost you more if they charge extra to give you proper advice.
The key difference here is proactivity. A CPA who reviews your income and financial situation regularly, say, quarterly, can help you stay ahead of the game. Regular check-ins and up-to-date financials help ensure that your projections match reality, allowing for timely pivots when needed.
If you don’t have a bookkeeper or someone guiding you through your financials, you might be missing out on opportunities to better plan and avoid paying more taxes than necessary. Working with the right CPA isn’t just about filing returns; it’s about strategic guidance that helps you achieve long-term financial success.
