Dispatch #65 - How to have a great relationship with your CPA February 16, 2021
We’re in the thick of tax season, so I have to ask: Do you have a great relationship with your CPA? What does that look like, anyway?
You know they “get” construction industry financial realities
You minimize taxes among your business(es) and personal
You’re taking the right amount of risk with your tax positions
You’re not surprised by large tax bills, refunds, or last minute deadlines
You know the CPA is available to help and truly cares about your welfare
How can you forge this kind of relationship with your CPA?
Work with the right CPA
Are they construction industry experts? For example, do they understand “WIP” and have they ever spoken with you about R&D tax credits?
Do they explain risk (more aggressive, less aggressive tax positions) and audit defense?
Can they provide both accounting and tax guidance to your financial team?
Does your Controller/CFO complain about or say good things about them?
Do they drive each season’s process with a schedule and document request?
Be a great client
Strong leaders set expectations. Do so with your CFO, Controller and your CPA. Hint: borrow the first five bullet points in this Dispatch. :-)
Respond quickly to requests for information
Ask questions (and keep asking until you understand the answers)
Each year, ask for and review the CPA’s planned work scope, schedule and fees
Meet with your CPA at least once per year; even a brief phone call goes a long way
In my experience, contractors who bring a little more to the relationship tap into that next-level of expertise and guidance from their CPA, and to good effect.
Need help with this or other financial matters faced by construction contractors? Let’s talk!
David Stern CFO makes every effort to provide useful and accurate information. This content, however, is not intended as a substitute for specific business-related financial advice. We disclaim all warranties and liabilities from its use.