Mowers roaring in the yard next door, the fragrant hint of freshly cut grass, and the distant waft of a grill firing away are all pretty clear signs that summer has arrived. We know that your mind is on other things like your upcoming tee time and trips to the pool with your kids, but perhaps you should check in about your accounting too. We know…Accounting is not the most “fun” topic to think about, but we also know that it’s a great thing to think about to make life a little easier come next tax season.
Here’s our list of the top 10 reasons to talk to your accountant throughout the year:
- Tax Planning – Every April, Uncle Sam comes calling for his money, and he comes around again at other major life milestones. During tax season in February, March, and April, most people are focused on that particular year’s concerns. However, at some point in the year, you should be evaluating your long-term strategy for managing taxes, and your accounting team can help you strategize this without the chaotic stress of meeting the April 15th deadline.
- Equipment Purchases – Many dentists and medical practice owners buy equipment at the end or the very beginning of the year, but we know that new equipment is often purchased at other points in the year. These large purchases often can have dramatic effects on your taxes. Letting your accountant know about big equipment purchases can make your quarterly taxes, and then tax season run much smoother.
- New Office Space – Moves into a new office space, whether you are leasing or buying, can have major implications for your financial situation.
- New Associates or Partners – Bringing an associate dentist or associate doctor to work with you, or become a partner can have a significant effect on the tax implications for the practice. By talking to your CPA about the change when it happens, you can minimize any cleanups in your financials later on.
- Growing Staff – Just as adding a new associate can adjust a practice’s accounting situation, a major growth in staffing can also cause major changes in taxes, payroll, and other figures within the practice’s financials.
- Change In Revenue – A major influx or decrease in revenue plays a huge part in the tax situation for the practice. Your accountant should know if you have a huge spike one direction or the other, so that they can help you plan throughout the year for any changes in your final taxes for the year.
- Life Changes – Remember back to when you first got married or had your first child? Those major life events offer up tax deductions or other changes in your overall tax situation. Divorces, marriages, and new children are all things that can happen throughout the year, and should be mentioned to your accounting team!
- Spouse Job Changes – You may not have major changes with you, your business, or your revenue, but remember that any major changes with your spouse’s income or type of income can play a major role in your tax situation. Going from a paid employee to a 1099 contract employee could be a major shift, even if your spouse ends up making about the same amount in income. A quick chat with your accountant can help you plan ahead as a couple for any tax implications associated with your spouse’s job change.
- General Questions – Of course, our team at Summit Accounting Solutions is always here to help answer any questions our clients have throughout the year. We encourage questions! Often, the simple act of asking a question opens the door to discussions and ideas to plan even smarter for taxes, accounting, and long-range financial plans.
- To Say Hi – If you’re in the area, or just want to call us up, we are always up for the friendly face! Many of our clients have become friends over the year, and we love any opportunity to hear how life is going.
There is a distinct reason why we are not a tax season shop that pops up for a few weeks in a vacant strip mall; we are a full-service accounting firm with the team designed to help our clients maximize accounting success and peace of mind through ALL of the year. We know that life happens, and that there are a number of situations that warrant a quick call to your accountant. The more prepared your accounting team can be, the smoother each year’s taxes run, and the more prepared you are for long-term tax implications. So, while you’re out there enjoying that freshly grilled burger on a hot afternoon, don’t forget to check in with us every once in a while about any of our top ten accounting items we listed today!