When is it Time to Replace your CPA Firm
Your CPA firm should be more than someone who simply prepares your tax returns. A good CPA should be a trusted business advisor who responds promptly, helps you plan ahead, and provides the financial guidance you need to grow a profitable company.
Here are some signs that it may be time to consider changing CPA firms:
1. You Can’t Get a Timely Response
When you call your CPA with an important business question, do they respond within a reasonable amount of time?
They should.
When you have an important business issue, you shouldn’t have to wait days for an answer. We believe that important questions should generally receive a response within four to six hours.
Your business needs timely information so you can make informed decisions.
2. Your CPA Firm Is Only Filing Your Taxes – Not Planning for Them
One of the biggest warning signs is being surprised by a significant tax balance or underpayment at the end of the year.
If your CPA tells you that your company has a substantial tax underpayment, ask yourself:
- Were your estimated tax payments properly calculated?
- Did your CPA provide year-round tax planning?
- Were you advised in advance about your potential tax liability?
If not, you may have a tax filer – not a tax planner.
Your CPA should be looking ahead and helping you minimize surprises through proactive tax planning and properly calculated estimated payments.
If your CPA is only looking backward at what happened last year, it may be time for a change.
3. You’re Being Charged by the Hour for Basic Business Guidance
Many CPA firms bill hourly for questions and business assistance. For example, you may be charged $300 or more per hour simply to discuss concerns about your business, QuickBooks, bank statements, or other financial information.
We believe your CPA relationship should be more proactive.
Our firm provides ongoing monthly review and analysis of your QuickBooks and other financial information to help ensure your company is moving in the right direction.
We look at your financial information, identify potential concerns, and provide feedback to help you stay on track and make better business decisions.
And when you have questions or concerns about your company, you shouldn’t have to worry about receiving another large hourly bill.
Our firm provides this ongoing support for a fixed fee of $300 per month.
Your CPA Should Be a Business Advisor – Not Just a Tax Preparer
Your CPA should help you understand where your business stands, where it is headed, and what you can do to improve its financial performance.
If your current CPA firm is difficult to reach, only focuses on filing taxes, or charges you every time you need business guidance, it may be time to consider a different approach.
We’re here to help you keep your business on track, make informed decisions, plan ahead, and ultimately become more profitable.