How Can I Communicate Better With My Tax Preparer?

Tax laws in the United States are very complicated, and it is invaluable to have someone who knows the ropes to help you navigate them. If you do not have a tax advisor, I recommend you get one. As your business prospers, eventually, it will become a necessity. Preparing your taxes is simpler when you get a professional to do most of the job.

Whether you have never had a CPA or if you have one that’s very near and dear to your heart; this will be one of the most valuable lessons I will ever teach you. In fact, it’s well worth your weight in gold.  

Why talk to a CPA?

You may find it odd and wonder, “Why would I create an entire blog about you talking to your CPA?” Have you ever noticed that these talented number experts have a language all their own?

I have worked side-by-side with entrepreneurs and CPAs for over 20 years, and I noticed a huge communication gap between the business owner and their tax preparers. People who aren’t close to the CPA world don’t even realize that this gap exists.

It’s very real, and is costing taxpayers thousands of dollars every year. Many of my CPA friends agree with me and are delighted with Business Untangled’s work to bridge that gap.

You can learn to speak with your CPA so that he can understand your unique situation. When you communicate with your CPA in his language, he will be able to do a much better job for you. It will be less stressful for both of you, and it could literally put thousands of dollars in your pocket!

Defining CPA

As financial guru Robert Kiyosaki says, “There is gold everywhere; most people are not trained to see it.”

Business Untangled is committed to training you with a new vision for managing your business. One of the main areas for improving profitability is paying less tax.

Let’s start by understanding what a CPA actually is. A CPA is a person who has worked very hard to earn a degree that designates them as a certified public accountant.

While CPA is a much respected degree, it is an accounting degree, which by itself does not make one a tax expert. And while a fine career, having a CPA degree has nothing to do with preparing income taxes. Some CPAs choose to specialize in tax, but I know many CPAs do not feel qualified to even prepare their own tax returns. You may find those CPAs employed in a corporate accounting position.

Being in the business of preparing taxes does not make one a CPA. However, the general public often uses the title “CPA” when referring to their tax preparer or anyone in the business of preparing taxes, no matter which title they do or do not hold.

The Accountancy Board is very particular about who is called a CPA, and they govern the right to use the designation CPA and make sure anyone doing so has earned the right to be called a CPA.

Tax experts can earn other designations that qualify them to prepare income taxes, though currently, there is no degree, education, or licensing requirement for the IRS for someone to be in the business of preparing taxes.

Enrolled agents are the only federally licensed practitioners specializing in taxation and have unlimited rights to represent taxpayers before the IRS. The designation of an enrolled agent is the highest credential awarded by the IRS.

Learning to Speak CPA

Now that you understand, you may only want to call a true CPA a CPA. Otherwise, you may call them a tax preparer, tax expert, or another more accurate designation. We know that tax practitioners, as professionals in any field, are varied in the individual expertise they bring to their job. Some are top of their field and others not so much.

For this communication lesson, we will assume that every CPA and tax preparer is a top expert in their field. With this in mind, the absolute stone-cold truth is that no matter how great a tax person or bookkeeper you hire, they do not live your life.

They translate your life into a tax return which depends on you, a non-tax expert, to gather all the information and present it to them with the proper tax posture for their translation process.

The better tax professionals might ask you for something you have missed, but they don’t know you did this or did that in your life, which may have a tax impact.

When complete, you are handed a completed tax form that you are asked to sign; then, your tax return is electronically filed with the IRS. You have done exactly as you are asked with little or no review of the final return because you trust your advisor.

It’s not a matter of trust; your tax preparer has done the best he can with the information he has, but he rarely has the whole picture; because your CPA doesn’t live your life.

Your tax expert will do an even better job and love you more if you give him complete information in the first place and posture it in the right way.

I’m sure you are wondering, “If I’m not a tax expert and my tax preparer doesn’t live my life, how can I possibly improve my communication with my preparer to make the kind of difference you were talking about?”

First, you will need to take responsibility for yourself and your business because you do live your life.

By reading this blog, you have already taken a step in the right direction.

If you desire more personal education and mentoring, contact Business Untangled so we can recommend options for your individual situation. We have unique tools and education proven to assist you in better communicating with your tax preparer. It will make the process easier for you and your preparer while saving you hundreds or thousands of dollars in tax every year.

Why The Business Untangled System Works

A survey showed that when tax preparers use The Business Untangled System, it is not unusual for their preparer to find an average taxpayer $2,500 to $35,000 per year or more in legal deductions.

The Business Untangled System proved to be worth well over $25,000 in tax savings for just one year to Mike L.

Mike called me in a panic when his CPA told him he owed $28,000 to the IRS. Mike agreed to learn and implement The Business Untangled System. He then took his information to his CPA, who revised his taxes with this additional information and told him he only owed the IRS $3,000. Mike saved $25,000.

But the best thing is that Mike can continue to duplicate that effort and repeat the savings year after year.

Mike’s results are not unusual for a business owner who works through The Business Untangled education.

Most business owners need to discover about preparing their taxes and maximizing their income and learn to “speak CPA”. With The Business Untangled System, it is so easy, and you will be equipped with everything you need to make and keep more money in your business.

Why wait? Call us today and see what Business Untangled can do for you!