Every smart small business owner takes their time when talking to an accountant. But talking to an accountant during tax time isn’t simply just a meeting that you need to get through so that you can get on with the rest of the year. It’s a sacred time to ask smart tax questions, especially as tax season sneaks up on us.
If you’re unsure as to which questions to ask, here are a few talking points to help get your conversation going.
Question #1: What information do you need from me?
The last thing you want during tax filing is to have to frantically sort out your financial reports, tax receipts, and other related documents. Instead, use an accountant software to stay organized all year round.
Ask your accountant for the information they need from you so that you can prepare for it right away. Even a 2-week window of gathering your documents will be much better than desperately searching the night before. The great thing about Kashoo is that you can involve your accountant by adding them as a user to your business so that they can generate reports themselves. It only takes a few seconds and you have the option to give them Admin, View/Edit Only, or View Only access.
Related: Step-by-step guide on how you can add multiple users to your business in Kashoo.
Question #2: Are there any business deductions that I may be overlooking?
All business owners are able to deduct a portion of your expenses. However, it is your responsibility to ensure that you maximize on these deductions available. After all, who wouldn’t want to reduce how much their taxes owed?
Use your time with your accountant to ask important tax questions related to deductions. Since your accountant (likely) knows your business already, they can easily advise on which deductions you can or cannot take.
Here is an article on the types of common deductions for small businesses.
Question #3: Is my current business structure still the right fit for me?
Choosing your business structure is key, especially when filing taxes. However, as your business grows, revisiting the business structure of your company is beneficial.
For example, if your business has reached the point where it’s ready to take on investors, then incorporating would work to your advantage. In the same vein, you might find tax benefits if you switched from LLC to an S-Corp. Do the research and take the meeting with your accountant as an opportunity to help assess if your current business structure is the right fit. After all, if your business has grown, maybe a sole proprietorship structure that you started with won’t make as much sense anymore.
Question #4: Are there any tax changes I should be aware of in 2020?
Meeting your accountant is a good time to inquire about any changes that may affect your business (or your personal taxes). Asking important tax questions like these will enable you to be aware of the changes—and as a result, make adjustments accordingly.
Several important changes to be aware of include:
- Basic personal amount (BPA)
- Annual inflation adjustment
- Tax brackets for 2020
- Canada pension plan (CPP) contributions
- Employment insurance (EI) premium rate and maximum
Question #5: How can I better prepare for next year’s tax season?
Lastly, if you have any tax questions you want to ask your accountant, then now is the time. Besides the obvious one of getting organized, you might want to inquire about ways to strategically plan for a healthy business as the new fiscal year approaches. Items like tax advice, creating financial forecasts/business budget, or even identifying gaps and opportunities in your cash flow analysis are sound areas to visit during your meeting with your accountant.
Read our tips to prepare for the following tax season.
Meeting your accountant during tax season is not solely to file taxes. Remember, if used correctly, this is a sacred and productive time that you can use to ensure that you receive the right support to grow your business.
Get Prepared To See Your Accountant
It’s important to be prepared when going to meet your accountant. The best way to do this is to stay organized throughout the year and keep your books up-to-date! Kashoo makes this virtually effortless.
Our newest update shaves hours off monthly bookkeeping for small business owners! Get up and running and see your financial reports in 10 minutes or less after you connect your bank account. Ready to see it for yourself? Try Kashoo for free for 14-days.