Your CPA is unquestionably more knowledgeable than you when it comes to taxes, and revenue recognition, but no one knows more about your own business than you. That is why it is imperative to take the precious meeting time you have with your CPA accounting firm Austin TX into your own hands and ask them these valuable and common questions.
- Do the new revenue recognition rules such as ASC606 affect me?
Revenue recognition needs to be on the top of every business owner’s mind. It is imperative and important that business owners understand the implications of new revenue recognition rules. Understanding these rules will not only keep you in compliance with US GAAP (generally accepted accounting principles) but will also allow you to better understand the revenue for your business.
- At what point should I have financial statements prepared or audited?
If you’re a business owner, you are no doubt preparing some sort of monthly financial statements, and if not, then this is a good time to think about asking your CPA about starting. There are many options or financial statement preparation and assurance that will fit appropriately with your current needs. Along with the monthly preparation of financial statements, it is a good idea to ask your CPA about assurance being done yearly on your annual financial statements. Having audited or reviewed financials can not only help you to make financial decisions but can be important when obtaining loans or preparing other due diligence.
- How can I reduce my tax exposure this year?
It is important to have conversations with your CPA regarding your current tax situation quarterly if not monthly. These will help to determine any tax strategies that can be implemented and any possible tax breaks or credits that your business is qualified for. When it comes time to file your taxes you will have been better prepared than most to handle the situation.
- Can we discuss this month’s or this quarter’s financial statements?
In order to make the best decisions for your business, you will want to ask your CPA about your most current financial statements. Make sure to talk about your profit and loss in-depth as well as your cash flow situation. Talk about your projected revenue so that you can understand your business’s tax liability. In addition, talk to your CPA about your plans to purchase fixed assets, incur debt, and any distributions to shareholders.
- Are there any tax credits or breaks that I should be aware of?
Tax law is full of intricate and dense information regarding possible credits and tax breaks that many businesses aren’t taking advantage of. Make sure to ask your CPA about credits that are common in your industry. Deductible expenses have changed recently so be sure to be mindful of expenses that can be written off year after year. Also, ask about state-specific credits and tax breaks based on the states where you have nexus.
- How doES the recent legislation of the TCJA and the CARES act affect my business?
As you know it has been an interesting time in the tax and business world. There were many changes in the Tax Cuts and Jobs Act along with the recent Coronavirus Relief act that may have implications for your business. Make sure to ask your CPA to help you understand the changes and what they mean for your business.
You are the expert in your business, and it is important to speak frankly to your CPA accounting firm Austin TX. Their guidance along with your understanding of the company can help to keep your business successful.