Are You Leaving Money on the Table? How a CPA Can Optimize Your Financial Strategy

Your CPA provides far more than tax prep. Let them guide you to financial victories all year long.

People often think of CPAs solely as tax preparers. While preparing taxes is a core part of a CPA's work, the reality is that CPAs do so much more. A skilled CPA can help you develop and execute smart financial strategies that put more money in your pocket. Read on to learn how partnering with a CPA can optimize your finances.

Take Advantage of Tax Deductions and Credits

One of the biggest ways a CPA can save you money is by finding tax deductions and credits you may be missing. Most people only claim the standard deduction when filing their taxes. However, if you own a home, run a business, have extensive medical expenses, or qualify for other deductions, itemizing your taxes could yield bigger write-offs.

A savvy CPA will ask probing questions to uncover potential deductions you may not even be aware of. They'll advise you on actions to take before year-end to maximize write-offs as well.

CPAs also stay up-to-date on changing tax laws and credits. For example, electric vehicle credits, energy efficiency home improvements, and other "green" incentives have become more generous in recent years. A CPA can determine which tax credits you qualify for and ensure you claim every dollar.

Make the Most of Retirement and Investment Accounts

Between IRAs, 401(k)s, HSAs, and other retirement and investment accounts, the options can get confusing. A financial-savvy CPA can help you make smart decisions to optimize these accounts for tax benefits and growth potential.

For retirement accounts, they can help select whether a Roth or traditional account is better for your situation. They'll advise you on maximizing employer matches and proper withdrawal strategies in retirement. For investments, CPAs help track capital gains/losses for tax planning and make recommendations to balance risk vs. reward.

Overall, a CPA helps ensure you aren't leaving any money on the table when it comes to retirement and investment planning.

Structure Your Business to Minimize Taxes

For business owners, working with a CPA is critical. CPAs are experts at helping you structure your business to lower taxes legally.

Some key ways they do this include:

• Choosing the right business entity (LLC, S-Corp, C-Corp)
• Taking advantage of business deductions
• Setting up payroll and accounting procedures that minimize taxes
• Using tax strategies like cost segregation to accelerate depreciation
• Implementing retirement plans like Solo 401(k)s

A CPA serves as an advisor to help business owners make decisions through a tax optimization lens. This allows you to keep more of what you earn.

Manage Debt and Cash Flow Intelligently

Managing loans, lines of credit, and cash flow is an intricate balancing act. A CPA can impart advice to help you borrow strategically and optimize cash management.

On debt paydown strategies, they'll assess whether approaches like debt snowball vs. avalanche make sense for your situation. For larger loans, they may advise converting to lower interest rate products.

Cash flow planning is also key. A CPA can help construct systems to segment money for taxes, growth goals, and monthly needs. This prevents overspending and ensures you have funds available when tax bills come due.\

Overall, a CPA serves as a sounding board to manage debt and cash flow in financially savvy ways.

Guide You on Major Financial Decisions

CPAs provide experienced counsel on all sorts of major financial decisions. Whether you're considering buying/selling real estate, investing in a business, inheriting assets, or other big moves, a CPA analyzes the tax ramifications and offers insightful advice.

They'll illustrate the after-tax results of different scenarios to help you make smart choices. Often CPAs partner with other professionals like financial advisors and lawyers to provide comprehensive guidance.

By consulting a CPA before major financial moves, you can sidestep costly tax surprises down the road. Their expert input helps you make savvy decisions the first time.

Add Up the Potential Savings

Hopefully, this article has revealed all the ways partnering with a top CPA can optimize your finances. From tax savings to strategic planning to advising on big decisions, a CPA's guidance adds tremendous value.

Don't leave money on the table by limiting a CPA's role to just taxes. Engage them as a year-round financial strategist and uncover savings you never realized were available.

At CartierCPAs, our experienced CPAs strive to be trusted advisors who help both individuals and businesses maximize their bottom line. Contact us to schedule a consultation and start optimizing your financial strategy today.

Your finances are the foundation for your future. Having a strong financial strategy allows you to weather life's storms and take advantage of new opportunities. Working with a certified public accountant (CPA) can help you build resilience into your finances to prepare for whatever the future may bring.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.