How To Know If Your Accountant Is Too Aggressive or Not Aggressive Enough On Your Taxes

by | Dec 22, 2022 | Business Strategy

As a business owner, you may struggle to put up with either an over-aggressive tax strategy from your accountant or a not-so-aggressive accountant altogether. Both could be a source of concern.

If you’re a business owner that’s spent a lot on hiring accountants and ended up disappointed by the services you received, or if you find yourself getting stuck between a rock and a hard place each time you file your taxes – this article spotlights three subtle and clear-cut indicators you should look out for.

1. Does Your Accountant Leave You To Make All The Financial Decisions With Little Input?

When your accountant leaves you to make all your financial decisions yourself without any professional input along the way, you may be dealing with a less aggressive accountant.

Accountants should be a vital part of their client’s decision-making process, helping them make informed decisions as they tread paths that have financial implications.

Waiting till the end of the year, when little can be done to remedy whatever financial oversight the client has made over the course of the year, does not represent the client’s best interest. 

As Entrepreneurial Accountants, we understand the questions and doubts that keep you up at night. With that, being your partner in financial decision-making is something we don’t take lightly, and that’s why we offer unlimited on-call financial advisory whenever you need us.

2. Does Your Accountant Proactively Communicate With You?

Check-ins, updates, sharing valuable insights, and reminders are key to maintaining a healthy relationship with your accountant.

In some situations, seeing your accountant once a year might be all you need, but you may need to rethink if, for example, your accountant never updates you on new tax policies and insights that could be helpful to you and your business.

If your accountant isn’t proactively communicating with you on updates on tax policies, advice through mergers, acquisitions, hiring changes, sales strategy, marketing budgets etc. Or insights on cash flow and projections, it’s time to have a conversation with them. 

When you find yourself volunteering ideas and strategies that should naturally come from your accountant, check it well, you may have a less aggressive CPA.

3. Does Your Accountant Encourage Excessive Tax Avoidance Measures?

It’s always a desire to pay as little tax as possible by taking advantage of every legitimate tax reduction strategy available. But, there might be a problem if your accountant always encourages tax cut measures that could be potentially dangerous in the final analysis.

As much as there are permissible means of lowering taxes payable that your accountant must be aware of and encourage, emphasizing options that border on tax evasion could be deleterious for your business in the aftermath.

Striking a balance With The Entrepreneur’s Accounting And Taxation Firm

Getting it right as an entrepreneur with respect to tax planning and preparation can come easy when you engage the best hands.

In executing an effective tax strategy, nothing beats the services of an accountant who doubles as an entrepreneur. This is the ace up our sleeves at Provision CPA, a Vancouver-based accounting and taxation firm, where we’ve built a team of entrepreneurial tax accountants and CPAs and created a culture of entrepreneurial accounting experience for entrepreneurs in more than twenty years.

With the interest of Canadian entrepreneurs at heart, we’ve integrated our custom-made services into a two-pronged approach that matches every client with a strategic advisor who is a seasoned entrepreneur and an accomplished CPA, with the added spice of direct on-call access all year round.

With our team of Tax Accountants and CPAs, we’ve successfully applied tested and proven principles that help YOU, the entrepreneur, take ownership of your business’s financial strategy and gain the return that is your due as a contributor to the growth of Canada’s economy.

You’re just a click away from unlocking opportunities for world domination in your business. 😉 Take the bold step and contact us today.

Image Credits: Alena Darmel on Pexels.