Updated: Nov 21
If you have hired a Certified Public Accountant (CPA), you expect them to help you save money, increase profits and keep your finances organized. However, not all CPAs are created equal. Here are five signs that your CPA may actually be costing you money:
1. Lack of communication
If your CPA isn't responding to you, they may not be prioritizing your needs. This can lead to missed deadlines, and penalties, and costs you more money in the end. Effective communication is crucial for successful financial management with a CPA. Regular meetings, an online financial tracking system, and a timeline of payment deadlines can help ensure everyone is on the same page. Access to the same information and open communication also aid in maintaining a positive relationship, avoiding costly mistakes, and ensuring financial order.
2. Overcharging for services
It's crucial to have high-quality financial services, but it's equally important to ensure that you're not overpaying. If you suspect that the cost of your CPA's services is too high, it may be worth your time to explore other options. This will help you save money, allowing you to allocate resources elsewhere, and it could also provide you with better value for your investment.
3. Outdated knowledge of tax laws
Tax laws are subject to frequent changes, so it's crucial that your CPA stays updated with the latest regulations. If your CPA isn't well-informed about the alterations in tax laws, they may not be able to provide the most effective advice for reducing your tax liability. Additionally, your CPA has missed tax filing deadlines, leading to expensive fines and penalties.
4. Failing to provide value-added services
If your CPA is not offering additional services beyond tax preparation, such as financial analysis or business planning, they may not be providing you with the full range of services needed for financial success. You may also be missing out on proactive tax planning strategies to save money in the future.
5. Lack of strategic planning
A good CPA should provide strategic planning advice to increase profits and reduce expenses. This means they will take the time to understand your business and financial goals and provide recommendations tailored to your specific needs. For example, they may suggest ways to improve cash flow, identify tax savings opportunities, or provide guidance on how to structure your business for optimal financial performance. By working with a CPA who provides comprehensive advice and guidance, you can feel confident that you are making informed financial decisions that will help you achieve your goals in the long term.
If you notice any of these signs with your CPA, it may be time to consider finding a new CPA who can better meet your needs and help you achieve your financial goals. It's important to have a high-quality CPA who can provide you with valuable advice and help you save money in the long run.
Hire us, Compass CPA PC. Our team of experienced professionals can provide you with a range of services, including tax strategy & preparation, financial planning & analysis, and business planning. Contact us today to learn more about how we can help you save money and increase your profits.