Has Your Million Dollar Business Outgrown Your CPA/Tax Planner?

By Brian Crane - Wealth Advisor

All businesses start from zero. They all earn their first dollar. They have their first expense. They face their first challenge and hopefully experience their first win. If you have built a business, chances are you have experienced a lot of “firsts” and you will continue to experience other “firsts” down the road.

If you are a business owner then one of your first “firsts” was filing your first tax return with a business now involved. When this occurred you may have worked with someone close to you, someone you found quickly, or someone that was less expensive. Or you may have even prepared your own tax return by using an online program. Like other decisions, you needed to get the task at hand done and may have found the way you believed to be the most efficient.

There’s a chance that now years later you are using the same tax solution you were using when you first started.

You enjoy using that accountant you started off with. You feel inclined to stick with them because they were with you from the beginning. You feel the need to stay loyal. Or maybe you fall in the camp of being someone who takes a few hours out of an early spring evening to fill out and complete your tax return on your own.

Are these the best solutions moving forward…?

For some, there is nothing wrong with what’s worked from the beginning. But…let’s stop for a second. Assess where your business is at this point in time. If you have seen substantial growth and are now operating at a different level from when you started let’s ask ourselves the question: 

Has my business outgrown my CPA/tax professional?

Your business may have grown and not be the same entity that it once was. And with that, you may have outgrown your CPA. The strategies and tax planning needed for larger revenue generating companies can be different and more complex compared to what a brand-new start up can utilize.

If you are starting to see revenue, creep up over a million dollars there may be strategies and options available that may make sense now versus when your business was brand new. A number of larger organizations are utilizing a variety of tax strategies to be more tax efficient. Wouldn’t you want too as well?

Is your CPA/tax planner aware of strategies available to you?

Are there tax savings available to you that you are not accessing?

Our tax team is familiar with tax planning strategies that higher income earners and businesses can utilize to find efficiencies. If you or your business falls in the realm of generating higher revenue and being more complicated, it may be time to have a second set of eyes look things over. Having an outside opinion may offer insight you have never considered, bring value in underutilized areas, and potentially offer tax savings that directly impacts your wallet.